money & economicsanalysisWikipedia1866 · Switzerland

Nestlé grew out of two rival Swiss firms, one selling baby food and one condensed milk

the gist

Nestlé's origin lies in two Swiss companies founded in the 1860s that competed across Europe and the United States. In 1866 two American brothers founded the Anglo-Swiss Condensed Milk Company in Switzerland. In 1867 Henri Nestlé began marketing a milk-based baby food. Daniel Peter developed milk chocolate and merged with Nestlé in 1879, after finding a way to remove water from milk so his chocolate would not go mouldy. The two firms merged in 1905, and the company later bought brands such as Kit Kat and Nescafé.

how it works

Condensed milk is made by evaporating water from milk and adding sugar, which keeps it stable for long periods. Daniel Peter's breakthrough was removing water from milk for chocolate, which allowed the solid product to last.

so what

Nestlé shows how early nutrition products and chocolate making combined into a global food giant. Its milk chocolate innovation helped make the Swiss chocolate industry world-famous. The company's growth through acquisitions illustrates how many brands are now owned by a few large corporations.

the bigger pattern

Many food giants trace their origins to early milk, chocolate or preserved food businesses. Consolidation through acquisitions is a long-running trend in the food industry.

fun fact

Nescafé was introduced during World War II and became a staple drink of the US military.

Adapted from Wikipedia, the free encyclopedia · CC BY-SA 4.0

Image: Wikimedia Commons