Saturday, July 08, 2006

Nestle Sales Down 18%

Nestle has been unsuccessful trying to increase sales for its candy bar, KitKat. Nestle has been trying to launch different flavors for the popular candy bar. Nestle has been trying to improve sales by introducing line extensions for its current popular product offerings. Meanwhile, it has been trying to avoid introducing new products. "Line extensions are a lot less risky, while new brands tend to be fewer and far between now," says Tom Vierhile, analyst with Datamonitor. Nestle's rival Kraft Foods Inc. turned Oreo cookies into Oreo ice-cream cones, an Oreo pie crust, miniature Oreos, and "spring themed" Oreos with purple filling. Additionally, retailers such as Wal-Mart Stores Inc. provide shelf space to brands receiving the most sales. Unfortunately, new products sales not very strong in most cases.

Nestle dropped the tagline "Have a break, have a Kit Kat" for "Make the most of your break." It hopes sales will improve.

Ball, Deborah. "Flavor Experiment for KitKat Leaves Nestle With a Bad Taste." Wall Street Journal. Page A1. Thursday, Julay 6, 2006.

No comments: