Nestlé shifts to 'fewer, bigger, better' innovation

Nestlé is aiming to halve the number of annual product launches, shifting from quantity to quality with "fewer, bigger, and better" innovations. This strategy focuses on "bigger bets" with the greatest potential to increase sales. The company has identified key categories for strategic investment, including infant formula, coffee, meal preparation, snacks, pet food, and in-home coffee appliances. Nestlé plans to add more "big bets" by 2026 and 2027, with the goal of having 15 to 20 high-impact projects in development. These projects are expected to generate at least 100 million Swiss francs (approximately $113 million) in incremental sales. Nestlé is also increasing its marketing investment to 9% of sales by the end of 2025, focusing on significant, targeted investments in its biggest growth opportunities. This reinvestment is supported by cost savings of at least CHF 2.5 billion by the end of 2027, building on existing efficiency initiatives. The company's R&D network, with over 4,000 employees across 23 sites globally, invests over CHF 1.7 billion annually. Nestlé is also exploring AI-driven recipe customization and generative AI for product development. A deep tech center is set to open in early 2026 in Orbe, Switzerland, to accelerate product innovation.