Accelerating our business transformation
To power our growth, we are reshaping our organization to be leaner, more agile and digitally empowered. Across the Group, we are streamlining structures, standardizing functions, and harnessing technology and automation, while maintaining our very high standards for safety and quality. These efforts are generating efficiencies and unlocking resources that we can invest in the businesses, capabilities, tools and activities that will drive our future success.
Smarter, faster, better ways of working will enable us to deliver our Fuel for Growth cost savings target of CHF 3.0 billion by the end of 2027. Here are some examples from across the company of how we are pursuing our transformation.
Leading digital transformation in Zone AOA
In 2025, we commenced a major upgrade of our global digital core, based on SAP technology, beginning in Zone Asia, Oceania and Africa (AOA). This upgrade will enable us to deploy AI at scale to not only achieve better insights but also automate and improve processes across our business operations. Thanks to Nestlé's streamlined tech architecture, we are on track to complete this upgrade across the entire Group within just two years.
We made this upgrade across the zone in 112 countries for 50 000 employees, and we did it with no interruptions to our operations. Our teams are already reaping some of the benefits.
Remy Ejel - CEO Zone Asia, Oceania and Africa
Remy Ejel - CEO Zone Asia, Oceania and Africa
We are using AI to better understand the lead indicators that are driving our profit and loss statement. Ultimately, agentic AI will help us advise our teams on the actions they need to take to see better results.
Anna Manz - Chief Financial Officer
Anna Manz - Chief Financial Officer
Empowering finance with AI
Nestlé’s finance teams are harnessing the power of a unified enterprise resource planning (ERP) system and standardized data to deploy advanced AI analytics. These tools enable rapid identification of performance challenges, root causes and inefficiencies, while enhancing forecasting accuracy. For example, we are leveraging AI to automate data cleansing and report generation, while also replacing manual forecasting with advanced statistical models for greater accuracy and efficiency. This is enabling our finance teams to focus more on interpreting results, supporting the business to make decisions and advising on strategy.
Harmonizing recipes to simplify
Nestlé recipe specifications across brands, products and markets have often varied, as a result of brand acquisitions or local customizations, for instance. Our R&D ingredient experts, material-recipe managers and procurement teams collaborate to validate and implement harmonized specifications, having reduced them by around 50% since 2019 and by around 10% since 2024. With digital dashboards that track our raw material requirements, we have been able to make well-informed decisions about ingredient sourcing faster. In addition, we are also applying this harmonized specification approach to packaging materials. As a result, procurement processes across all raw materials have become more efficient and cost-effective.
We are leveraging our expertise across categories to develop a global approach to recipe and material specification. By complementing this with digital tools, we are becoming more efficient, while ensuring safety, compliance and preference.
Stefan Palzer - Chief Technology Officer
Stefan Palzer - Chief Technology Officer
Our goal is 100% digitally connected, end-to-end operations - seamlessly orchestrating every step of the value chain, optimizing inventory, automating processes, and ensuring real-time supply chain visibility for smarter, data-driven decisions.
Stephanie Pullings Hart - Chief Operations Officer
Stephanie Pullings Hart - Chief Operations Officer
Driving efficiency with connected operations
In 2025, we expanded our e-auctions platform. Around 85% of our procurement teams now use it for over 40% of Nestle’s purchasing spend. Through the real-time process, suppliers respond to our purchasing need, competing instantly on price, quality and quantity. The secure, online tool is accelerating Nestlé’s sourcing process and reducing its costs, with many transactions delivering up to 10% in incremental savings.
We also scaled our single manufacturing system to nearly 90% of our 335 factories. These connected factories utilize real-time data to optimize line performance, minimize downtime and increase automation. Our manufacturing performance now ranks in the top quartile among peers. We aim to further enhance operations with AI, robotics and the use of digital twins.
Increasing brand-building effectiveness
We are transforming our brand-building capabilities by applying technology at scale. In 2025, we made significant progress in consistently measuring marketing return on investment (ROI), using advanced marketing mix modeling to optimize both short-term sales and long-term brand building. We launched an innovative AI-driven service that uses digital twins to create product visuals for e-commerce and Nestlé assets, empowering marketing teams to produce creative content faster, more economically and at scale.
Sales teams increased their use of AI and analytics to optimize in-store execution and promotional spend. We built a virtual sales assistant, powered by agentic AI, that is automating up to 40% of routine tasks and generating a time savings of 20–35% on such tasks for salespeople in pilot markets.
We equip marketing and sales teams with digital tools that boost quality, efficiency and effectiveness - delivering better ROI and enabling greater focus on growing our brands and winning with our consumers and customers.
David Rennie - Head of Strategic Business Units, Marketing and Sales
David Rennie - Head of Strategic Business Units, Marketing and Sales
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Nestlé's Annual Report includes our Annual Review, Corporate Governance Report, Compensation Report, Financial Statements and Non-Financial Statement.
