NESTLE'S top man in Britain has given frank answers after reporter Matthew Woodcock quizzed him on the future of the company's York chocolate factory.
Alastair Sykes, chairman and chief executive officer of Nestl UK, who was the former managing director at York, said he believed Nestl could overtake Cadbury in the race to be the UK's top-selling chocolate maker.
Q: How would you gauge Nestl Rowntree's performance since the arrival of Chris White as managing director?
A: I brought Chris White in to run Nestl Rowntree as I believe he has the vision, expertise and skills to bring new impetus to our confectionery business.
I haven't been disappointed. Our share of the confectionery market - which is a relatively flat market - remains healthy.
Chris has breathed new life into some of our most iconic brands and the results are very good.
Our 2004 quarterly share improved progressively from 16.3 per cent in the first quarter to 17.5 per cent in the fourth quarter, driven by six per cent year on year growth in consumer value sales of KitKat.
KitKat achieved six per cent growth and generated £260 million of sales (consumer value based on recommended selling price).
Quality Street also enjoyed a good year with a nine per cent increase in sales during 2004.
Q: Has the company succeeded in increasing its market share, if so by how much? What are the current figures?
A: Our 2004 quarterly share improved progressively from 16.3 per cent in the first quarter to 17.5 per cent in the fourth quarter, driven by six per cent year on year growth in consumer value sales of KitKat.
Q: If there has been an improvement what are the factors behind this?
A: KitKat has enjoyed six per cent growth due to strong performance of the different KitKat variations, including, Lemon Yogurt, White and Luscious Lime.
Q: Is it a realistic prospect for Nestl Rowntree to overtake the market leaders Cadbury?
A: Yes. Chris is a highly motivated and ambitious individual and I know that achieving number one position is what he is striving for.
Q: Can you give an assurance about the future security of the York factory? Where do you see it in ten years?
A: Nestl Rowntree is proud of its heritage in York and having presided over the business for a number of years, I have many happy memories.
Over the past five years, Nestl Rowntree has invested £115 million in its production facilities of which £75 million has been invested in the York factory - one of the largest in the world for Nestl.
Q: Are more jobs likely to go as a result of the continuing efficiency drive?
A: As with any business, restructuring is a continual process in the long-term interests of growing the business and remaining competitive.
The restructuring is balanced by significant capital investment in our factories.
Updated: 09:31 Wednesday, March 09, 2005
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