Brand Mix

Back in the early 90s, not long after Nestlé had acquired the Carnation company it decided to start using the Nestlé brand as an endorsement on most of its products.

There was much weeping and gnashing of teeth from the brand managers and a whole slew of complaints and concerns. "Nestlé doesn't mean anything", "Nestlé only stands for chocolate", "I don't have room on my label" (that was my excuse and I used my little 3oz jar of Coffee-mate to illustrate the point).

Of course, all such complaints were politely ignored and now the Nestlé logo appears on most Nestlé products (one pretty obvious exception is pet food). So, what has Nestlé gained by its insistence over 10 years ago:

1) People no longer think of Nestlé as being only a chocolate company
2) Nestlé's portfolio of products and brand are better connected - useful for sales, cross promotions, PR and investor relations
3) Now that Nestlé is better known, its use on the label adds a level of stature and acts, as intended, as a quality seal. This is particularly helpful for new brands that are launched
4) Nestlé's corporate reputation is strengthened by its more visible retail presence and its direct association with its brands

I'm not saying I was wrong all those years ago. I mean it was a small label.