A Visit to the Engine Room of the Billion-Dollar Brands

Nestlé's headquarters in Vevey is reminiscent of the sets from early James Bond films. Located directly on Lake Geneva, the historic building from the early 1960s rises above the former site of the Grand Hôtel. It was designed by Swiss architect Jean Tschumi, one of the most important figures of postwar modernism. With its striking Y-shaped floor plan, the cantilevered double-helix staircase inside, and its façade construction—which was revolutionary at the time—the building was regarded as a promise of the architectural future when it opened.

More than six decades later, this very contrast is palpable. Outside, a building that has long been recognized as a cultural asset of national significance. Inside, a company that is currently reinventing itself.

For while the view sweeps across Lake Geneva and the vineyards of Lavaux wind their way up the slopes, the conversations inside revolve around artificial intelligence, large language models, data platforms, and the question of how brands can thrive in a world where algorithms increasingly determine what information is made visible.

Nestlé hosted its annual «Informal Media Event.» What followed was more than just a corporate presentation. It was a glimpse into the inner workings of a corporation whose brands reach billions of people every day—and which, under new CEO Philipp Navratil, is working to prepare its billion-dollar brands for the next phase of growth following a period of turbulence.

30 Brands the World Knows

David Rennie, Executive Vice President of Strategic Business Units, Marketing, and Sales, begins with a figure that sets the stage. Nestlé has 30 so-called “billion-franc brands”—brands that each generate more than one billion francs in sales. Together, they account for about 70 percent of the Group’s total sales. No other consumer goods group has a comparable portfolio

But size alone does not explain its value.

Rennie provides examples that illustrate the cultural significance some of these brands have achieved. In the Philippines, MILO has been organizing a marathon for five decades.

In Dubai, the Burj Khalifa was lit up in bright red to celebrate NESCAFÉ's 85th anniversary. And in India, the government honored MAGGI with its own commemorative stamp to mark the brand's anniversary.

It is at this point, if not sooner, that we Swiss come to realize the scale on which some of these brands operate. While people here are still debating whether to pronounce «Maggi» with a hard «G» as in German or as “Matschi” in Italian, the brand has long been considered a national cultural treasure in India. A postage stamp for a food product may seem unusual from a Swiss perspective. For Nestlé, it’s an expression of what strong brands can become over the course of decades: cultural touchstones that extend far beyond the product itself.

It is stories like these that make it clear that Nestlé has long since moved beyond simply selling products. The company manages cultural icons—brands that are deeply embedded in the daily lives of consumers in many countries and, in some cases, even in their identities.

Fewer Brands, Greater Impact

At the same time, Nestlé is moving away from an approach that shaped the industry for many years: supporting as many brands as possible at the same time. Instead of allocating marketing budgets to around 350 brands, the company now focuses on just over 100 brands. The approach is: fewer, bigger, smarter. Or, as Nestlé puts it: «Fewer, Bigger, Smarter.».

David Rennie outlined this new direction early in the afternoon. Later, CEO Philipp Navratil revisited the idea and clarified what it entailed: Not every brand requires the same level of resources. Investments are made where innovation, differentiation, and relevance are particularly strong. The core brands, which are worth billions, are at the center of this strategy.

The foundation for this is the so-called «4Us,» which both Rennie and Navratil refer to time and again. They are far more than just a marketing model. Rather, Nestlé views them as a common language for the entire company—from research and production to communications.

• Unrivaled Superiority: Products should be demonstrably better than the competition—whether in terms of taste, quality, or technological performance.
• Unbeatable Value: Consumers should be able to find an attractive option regardless of their budget—from affordable entry-level products to premium solutions.
• Unmissable Visibility: Brands need to be visible where consumers spend their time. More and more often, that means digital platforms, social media, and e-commerce rather than traditional television advertising.
• Unforgettable Communication: Communication should be culturally relevant, spark conversations, and leave a lasting impression of brands.

What is particularly noteworthy is the consistency with which Nestlé applies these principles across the entire company. Anyone walking through the various innovation areas this afternoon will quickly notice: Whether it’s Cold Coffee, Choco Bakery, Purina, or MAGGI—almost every innovation on display can be traced back to at least one of these four principles. The 4Us are not just a framework. They represent an effort to align a corporation with many brands and thousands of products behind a common growth strategy.

The Brand as a Driver of Growth

This change is particularly evident with KitKat.

The brand was the second-most-awarded brand at the «World Advertising Championships,» the Cannes Lions. The spotlight was on the «The KitKat Heist» campaign, which turned the theft of a truck carrying 400,000 KitKat bars into a global communications story.

What began as a potential PR problem turned into one of the most successful campaigns in the company's history. According to Nestlé, the campaign reached billions of people and generated media value in the hundreds of millions. The campaign won a Grand Prix as well as numerous other Lions. m&k has reported on this in detail. 

However, the mindset behind the awards is at least as important as the awards themselves.

Today, Nestlé no longer views KitKat primarily as a chocolate brand. The brand is meant to create experiences. The partnership with Formula 1 follows exactly this logic. The famous slogan «Have a Break» is placed in the context of the world’s fastest sport. At first glance, this seems like a contradiction. Upon closer inspection, however, the pit stop—just like the recently introduced hydration break at the World Cup—is arguably the most famous break in sports. Victory or defeat is decided in a matter of seconds. It is precisely this intensity that makes the partnership so interesting for Nestlé.

A classic advertising slogan is thus transformed into a global experience platform. The brand no longer appears only in commercial breaks or at the point of sale, but becomes part of a culture followed by millions of people worldwide. Products, promotions, fan engagement, hospitality offerings, and digital content all intertwine. The break is reinterpreted—not as an interruption of the action, but as its defining moment.

From Sponsorship to «Brandplatforming»

Nestlé is increasingly relying on integrated activation models that combine traditional advertising, social media, retail, influencers, and experiential marketing. Brands are no longer managed through individual campaigns, but rather through platforms that generate attention and relevance over extended periods of time.

Using KitKat as an example once again, Rouven E. Lochmüller, Global KitKat Lead, demonstrated how Nestlé uses global partnerships today as integrated brand platforms. The Formula 1 partnership encompasses far more than traditional sponsorship, ranging from limited editions to influencer activations and exclusive fan experiences.

The activation model presented here clearly illustrates how closely the various touchpoints are interlinked. From media presence to point-of-sale promotions to exclusive experiences for fans, each component serves the same purpose: to translate brand awareness into brand strength and brand strength into growth.

KitKat's Formula 1 partnership is a prime example of how modern brand management works today. The focus is not on individual advertising campaigns, but on a coordinated media mix that connects all touchpoints.

The activation bundle is complemented by exclusive products, limited editions, and experiences that fans cannot purchase. Each channel serves a distinct purpose—from increasing reach to building brand loyalty to driving sales. The goal: to transform a sponsorship partnership into a connected brand experience that makes an impact throughout the entire customer journey.

From Cold Coffee to Choco Bakery

Anyone walking through the various innovation areas at Nestlé headquarters on this late afternoon will quickly notice a pattern: Every innovation begins with a specific consumer behavior.

This is particularly evident in the coffee segment. This category is not only the company’s largest division, but also one of its most important growth platforms. And it’s no longer just about the classic morning cup of coffee.

Cold coffee, in particular, is emerging as one of the most dynamic segments worldwide. Nestlé points out that about one-third of the growth in this category stems from new consumption occasions. Coffee is no longer consumed solely to wake up. It has become part of lifestyle, enjoyment, and social interaction.

Younger target groups are experimenting with recipes, sharing their creations on TikTok or Instagram, and turning themselves into baristas. Nestlé refers to this as «coffee hacking.» Consumers are, in a sense, further developing their own beverages and creating new ways to use existing products.

Brands such as Nescafé, Starbucks, and Nespresso are responding to this trend with concentrates, new machines, ready-to-drink offerings, and products suitable for personalized creations. At the same time, Nestlé is expanding its presence beyond the home—for example, with coffee solutions for offices, hotels, and the foodservice industry. Coffee is thus increasingly becoming an ecosystem of products, devices, services, and experiences.

In the food sector, another trend is shaping the strategy. Consumers are looking for new taste experiences, but at the same time want to spend as little time as possible on preparation. Convenience and a spirit of discovery go hand in hand.

MAGGI, in particular, plays a central role here. The brand is now considered the group’s food brand with the widest global reach, as Marcin Poplawski, VP and Global Head of Marketing Transformation, revealed in his remarks. What’s remarkable is its dual role: From a global perspective, MAGGI is one of the most valuable brands in the portfolio. Locally, however, it is perceived in many places as a national brand—in India as well as in Germany or France.

That is precisely where its strength lies. While the brand benefits globally from its size and investments, it simultaneously manages to remain culturally relevant and deeply rooted in local communities. The presentations in Vevey made it clear that Nestlé increasingly views this ability to play both sides as a competitive advantage.

This new way of thinking is also evident at Choco Bakery. The combination of chocolate, cookie, and filling originated in Brazil and is now exported to numerous markets. For Nestlé, it’s a prime example of how local innovations can become global growth platforms—in line with the principle: developed locally, scaled globally.

When Cat Food Looks Like Foie Gras

The connection between brand management and science is particularly evident in the Purina division. The numbers speak for themselves. With sales of 18.4 billion Swiss francs, PetCare is one of the Group’s key growth drivers. This division now generates sales of nine billion.

Some of the examples of innovation are truly astonishing.

Cat food is designed to make it easier for cats to bite into. Jellies are modeled after natural eating habits. Packaging is developed to ensure that the product retains its shape on the plate. Other products combine insights from microbiome research, immunology, and geriatric medicine.

Behind this lies a trend that Nestlé has observed worldwide: Pets are increasingly being treated like family members. Or, as the company puts it: “Pet Humanization.”.

The next battle will take place in the AI

However, perhaps the most exciting part of the afternoon doesn't begin until near the end. Corinne Gabler and Chris Ford will demonstrate just how much artificial intelligence already influences purchasing decisions today.

The key finding: Consumers are increasingly relying on AI-powered recommendations. At the same time, platforms like Google are integrating generative AI more and more into their search results. In some Nestlé categories, AI-generated responses are already appearing in over 80 percent of search queries.

For brands, this fundamentally changes the rules of the game: It is no longer just people who decide which content is visible. Increasingly, algorithms and language models are also evaluating which sources appear to be trustworthy.

Nestlé is responding with its own strategy centered on context, content, and credibility. Thousands of employees are being trained, brands are being systematically reviewed for their visibility in AI systems, and content is being specifically optimized for this new reality.

This gives rise to a remarkable paradox.

The more powerful AI becomes, the more important brands become. After all, in a world where information can be generated at any time, trust becomes the key differentiator.

The engine room is running

Shortly before the end, Philipp Navratil himself steps before the media contingent that has traveled to the event. The new CEO refrains from offering grand visions. Instead, he soberly describes what’s at stake: Nestlé must move faster. It must get better at understanding consumers. It must get better at translating insights into innovations. It must be better at keeping brands relevant. Data and AI, he says, are not ends in themselves, but tools.

One sentence really stands out:

«AI is a driver of growth.»

Perhaps this very sentence sums up the afternoon best.

Today, Nestlé's engine room is no longer just about factories, recipes, and supply chains. It consists of data, science, creativity, and brand management.

And based on the conviction that strong brands remain the most valuable resource, even in the age of artificial intelligence.

When the engine room calls it a day

After hours filled with numbers, strategies, innovation platforms, and brand architectures, the event moves to a lower level of the historic headquarters. There, where the presentations end and the official slides disappear, the part of the afternoon that doesn’t appear on any chart begins.

At a cocktail reception, accompanied by delicate hors d’oeuvres and off-stage conversations, job titles and organizational charts fade into the background for a moment. Those in charge of billion-dollar brands become people who talk about their markets, about products that became surprisingly successful, or about ideas that never made it to market. In between, they share anecdotes, compare experiences, and make connections.

Chairman Pablo Isla also addresses the guests with a few words. What he says remains just as off the record as many of the conversations taking place that evening. That is part of the unspoken agreement at such gatherings. Not everything that is interesting belongs in the newspaper the next morning.

Perhaps that is precisely the final insight of this day on Lake Geneva.

When you look at Nestlé’s billions, what you see at first is a global powerhouse with vast resources, world-renowned brands, and an impressive innovation machine. But if you spend an afternoon looking behind the scenes, you’ll also realize something else: Behind every chart, every campaign, and every growth platform are people striving to understand consumers better than they did the day before.

The engine room behind billion-dollar brands consists of data, science, creativity, and technology. Above all, however, it consists of people.

And that is exactly why this engine is still running with astonishing power, even after more than 150 years.