Nestle Continues to Outperform With Petcare and Coffee Leading the Way

Although Nestle’s efforts to reposition itself as a nutrition, health, and wellness company have largely been timely, the company has been struggling to reach its benchmark organic growth rate of 5%-6%. COVID-19 has been a net positive for the group, as negative impacts from its exposure in out-of-home product categories and channels has been more than offset by a robust boost in sales of food-at-home categories such as coffee. The pandemic has also been a positive for the already advantaged Petcare category ("humanization" of pets and premiumization trends) as millions of households around the world decided to adopt pets during lokcdowns.