Nestle Alcon Value of Listing
Nestle and Alcon- The Value of a Listing
Executive Summary
Nestle:
In 2001:
Groups net profits: CHF 5.7 billion (USD 3.5 billion)
Annual sales: CHF 81.4 billion (USD 48.2 billion)
Estimated global market share,
Food and beverage industry: 1.4%
Processed and branded products: 2.6%
Contribution of top brands Nestle, Nescafe, Nestea, Maggi, Buitoni and Friskies: 70% of sales
Two leading business segments (60% of sales):
Beverages and milk products
Nutrition and ice cream
Reminder of business:
Prepared dishes
Cooking aids
Pet care
Chocolate
Confectionery and biscuits
Pharmaceutical products
Employees: >250,000
Factories: 508
Offices: in over 80 countries
Sales were geographically spread evenly:
Europe and US: 30%
Africa, Asia and Oceania: 19%
Swiss company had only 1% sales in Switzerland
Alcon:
Eye care subsidiary of Nestle
Founded in: 1945
Founded by: two pharmacists
Specialized at: ophthalmic products
By 1970
Experienced early success and continued growth
Sales: $25 million
Publicly listed in 1971
1977: wholly acquired off the New York stock exchange by Nestle
Held most of its IPR with Nestle in Switzerland
Patents licensed to US operations which returned royalty payments
1992:
Became Swiss-domiciled company
Incorporated in Hunenberg, Switzerland
Top management and central R&D efforts all remained in Fort Worth
2000
World’s leading ophthalmology company
Net earnings: $331 million
Sales: $2.5 billion
Developed, manufactured and marketed:
Ophthalmic pharmaceuticals
Ophthalmic surgical equipments
Contact lens care products
Consumer eye care products
Not active in glasses and contact lenses areas
Countries operated: 75
Employees: 11,000
Products present in: 180 countries
Total sales staff: 2,200
Sales staff focused on markets outside US: 1,500
Sales and earnings generated in US: >1/2
Analysis
Financial and Business details of Alcon:
Leader in every product category it entered
Twice as large as its
Executive Summary
Nestle:
In 2001:
Groups net profits: CHF 5.7 billion (USD 3.5 billion)
Annual sales: CHF 81.4 billion (USD 48.2 billion)
Estimated global market share,
Food and beverage industry: 1.4%
Processed and branded products: 2.6%
Contribution of top brands Nestle, Nescafe, Nestea, Maggi, Buitoni and Friskies: 70% of sales
Two leading business segments (60% of sales):
Beverages and milk products
Nutrition and ice cream
Reminder of business:
Prepared dishes
Cooking aids
Pet care
Chocolate
Confectionery and biscuits
Pharmaceutical products
Employees: >250,000
Factories: 508
Offices: in over 80 countries
Sales were geographically spread evenly:
Europe and US: 30%
Africa, Asia and Oceania: 19%
Swiss company had only 1% sales in Switzerland
Alcon:
Eye care subsidiary of Nestle
Founded in: 1945
Founded by: two pharmacists
Specialized at: ophthalmic products
By 1970
Experienced early success and continued growth
Sales: $25 million
Publicly listed in 1971
1977: wholly acquired off the New York stock exchange by Nestle
Held most of its IPR with Nestle in Switzerland
Patents licensed to US operations which returned royalty payments
1992:
Became Swiss-domiciled company
Incorporated in Hunenberg, Switzerland
Top management and central R&D efforts all remained in Fort Worth
2000
World’s leading ophthalmology company
Net earnings: $331 million
Sales: $2.5 billion
Developed, manufactured and marketed:
Ophthalmic pharmaceuticals
Ophthalmic surgical equipments
Contact lens care products
Consumer eye care products
Not active in glasses and contact lenses areas
Countries operated: 75
Employees: 11,000
Products present in: 180 countries
Total sales staff: 2,200
Sales staff focused on markets outside US: 1,500
Sales and earnings generated in US: >1/2
Analysis
Financial and Business details of Alcon:
Leader in every product category it entered
Twice as large as its