Exploring Nestle Australia: A Leading Food and Beverage Manufacturer and Exporter

In this document we will discuss about Exploring Nestle Australia and below are the summary points of this document:- Nestle Australia is a major food and beverage manufacturer and exporter, with a wide range of products. Nestle has a strong global presence, operating in over 86 countries and employing approximately 308,000 people worldwide. In Australia, Nestle is actively involved in supporting sports events and promoting healthy lifestyles, including collaborating with the Australian Institute of Sport.

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Nestle Australia is a manufacturer and markets a broad variety of food and beverage
commodities in Australia. Some of the products by Nestle entail drinks, culinary goods, snacks,
noodles, confectionary products, toddler nutrition, pet food, and chocolates. Nestlé Australia also
exports its merchandise. Nestle was established in 1908, and its headquarters is situated at
Rhodes Australia (Bloomberg, 2019). Nestlé Australia also runs a subsidiary. As of 2017, it was
reported that Nestle Australia employed more than 4400 employees (IBIS World, 2019) with the
inclusion of staff from all subsidiaries that are under its authority. Nestlé has a presence in more
than 86 nations and employs approximately 308,000 individuals across the globe (Statista, 2019).
Nestlé S.A. is a swiss-established company and has been ranked as one of the largest
manufacturers of consumer products globally. Nestlé is a global firm operating internationally
and has its headquarters situated in Vevey Switzerland. Nestlé has positioned itself in the
markets it operates enabling it to compete favorably.
Despite having a presence in Australia, Nestlé seems to be taking an interest in the region
of Oceania where the area is characterized by mixtures and different monetary conditions,
traditions, and flavors. Nestle as one of the biggest food and beverage corporation
internationally, is expected to have a sense of duty towards its clients. Nestle believes that it has
to ensure that consumers live a healthy lifestyle by indulging in sporting activities; thus, Nestlé
supports many sports events and is increasing its cooperation through rewarding individuals who
are active. Nestle struck a deal with the Australian Institute of Sport where Nestlé is making the
lives of young individuals better by mastering their knowledge in understanding the different
nourishment demands.
Regulatory frameworks
Forum on Food Regulation (FOFR)

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FOFR fundamentally regulates and monitors the growth of residential food by instituting
administrative frameworks and also amending the strategic regulations related to domestic food
principles. Also, FOFR has the mandate to adopt, change or ratify such laws and command that
such policies be examined. FOFR administration is composed of one minister from New Zealand
and health ministers from both Australia and the neighboring regions, the Government of
Australia is also a member and other ministers associated with food issues appointed through
their jurisdictions gives assurance of establishing a food chain system aimed at developing food
safety regulations (Agriculture Victoria, 2017).
Food Standards Australia New Zealand (FSANZ)
Food Standards Australia New Zealand is a bi-regional state. The primary role of FSANZ
is to establish and control the Australia New Zealand Food Standards Code which reports
instances and practices of additives, security regarding foodstuff, practices associated with food
labeling and G.M. foods (New Zealand Government, 2019).FSANZ in Australia is responsible
for organizing principles in the food supply chain and also in fundamental production and
processing regulations and policies aimed at ensuring cleanliness associated with food and
establishing restrictions particularly from food obtained from farming activities and als1o
veterinary products.FSANZ introduced principles in consultation with other government
institutions in addition to the already existing stakeholders.
Regional food security policies aimed at protecting the health and security of consumers
are drafted according to the administrative perspective by FSANZ and are disseminated by the
Australia New Zealand Food Standards Code (LeNoir, 2015). Australia, New Zealand and the
regions are in charge of ascertaining the prerequisites regarding the Codes regulating food
products. A perfect illustration is the Victoria DFSV which ahead imposing and sustaining the

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regulations regarding food particularly in the dairy enterprise by imposing regulations on the
Victorian Dairy Act 2000 and also for the Food Act of 1984.
Food Regulation Standing Committee (FRSC)
FRSC functions as an aiding committee of the Australia and New Zealand Ministerial
Forum on regulations and deals with food related issues. FRSC is also in charge of coordinating
policy counsel to the Forum and also facilitates a nationally consistent perspective to the
effectuating and backing of food standards (The Departmen of health, 2016). FRSC promotes
and ensures providing strategic counsel to FoFR and provides assurance in addressing the
utilization and enforcement of food standards.
Modern slavery bill
The contemporary anti-slavery bill would require Australia's most prominent firms to
respond to modern slavery in their supply chain systems, and this would make consumers incur
the additional costs. Nestlé asserted that while its perspective of the mandatory requirements was
reasonable, in reality, it would mean that multinational corporations would have to undergo the
hustle and bustle of preparing bespoke statements for each country that required such reports.
According to Nestle, not every supplier would be willing to bear the costs as some will pass the
expense to their respective customers. Nestlé explained in one of the news that compulsory
forced labor in the cocoa supply chain is unethical and against the practice and this led to Nestle
implementing a sourcing standard that was deemed ethical yet responsible that has the
mandatory prerequisites of suppliers associating to pay rates, hours involved in the working
process and the ages of the workers.
The Modern Slavery Bill by the government of Australia would necessitate that some of
the largest enterprises with yearly accumulated revenue of at least $100 million to begin

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publishing annual statements of the procedures they are taking to resolve modern slavery in their
supply chains and daily operations. Nestlé warned its customers that they would have to incur the
additional costs if Australia enacts the law stipulating the companies to publish reports on risks
associated with modern slavery.
Other Australian food regulatory mechanisms entail
Operationalizing Inter-Governmental Agreement, a prerequisite amendment of the
ANZFA Act of 1991 aimed at establishing procedures of the regulatory system regarding fresh
foodstuff. The major foundations of the contemporary mechanism are the inauguration of The
Australia New Zealand Food Standards Council whose main function is providing a formula of
regulations for making household food systems.
An institution such as Australia, New Zealand Food Regulation Standing Committee is
tasked with providing technical advice to the ANZ Food Standards Council presided by the
Secretary of the Commonwealth health office (Ghosh, 2014). Also, the standing committee
entails leaders of divisions whose leaders are members of ANZFSC.
Impact of the regulations on Nestle
The regulatory frameworks such as FSANZ make it transparent that FSANZ is
established to enable consumers to have immense faith, trust, and security of the involved food
store network. FSANZ also provides an administrative framework that creates an enabling
financial environment for Nestle.FSANZ also provides consumers data recognizing the
commodity that inspires them to make informed choices as this enables the provision of stability
regarding regional and global food guideline to be used in Australia without the need to
compromise on the security imposed on the overall health and consumers' safety.

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A good example is the temporary endorsement by FSANZ regarding a submission by
Nestle aimed at lessening the primary prerequisite for L-histidine in baby formula products
(Hasse, 2016). The other illustration is how some manufacturers from Australia and the
surrounding regions with the inclusion of Nestle Australia have provisionally quit using
controversial food colors. Nestlé Australia will no longer utilize non-natural colors in some of its
smarties items.
Identify treaties, conventions or agreements
One of the deals is the Australia New Zealand Food Standards-setting Agreement, and
this is a treaty between Australia and New Zealand an agreement to improve the combined
foodstuff frameworks in both countries. It is in this context that it is imperative to examine the
CoOL prerequisites to establish an integrated methodology regarding CoOL of food.
Similarly, there are a country of origin arrangements stipulated in other Australian, and New
Zealand acts such as the Australian Trade Practices Act of 1974(TPA) and the Australian
Commerce Trade Descriptions Act of 1905(CTDA)
The Food Regulation Agreement
The Council of Australian Governments (COAG) was established in 2000 through an agreement,
according to COAG it is mandated to institute duty to the Commonwealth, federal and territory
governments with the motive of developing a regional formula managing food control within the
Australian boundaries (Food Standards, 2015). The main motive behind the establishment of
FRA is develop a regional protocol of establishing food control by facilitating overall health and
security, removing the administrative burden on the food sector, encourage the cooperation of
Australian residential and export requisites with the global principles and create an
administrative methodology convenient for its users.

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Food Treaty between Australia and New Zealand
The governments of both Australia and New Zealand entered a formal agreement about
the integrated food standards system through the provisions of a treaty (Food Standards, 2015).
This inspired the need for a legal agreement between Australia and New Zealand leading to
creation of an institution such as Development of joint Food Standards. The main motive of such
a treaty is to remove unnecessary barricades that are connected to commerce, to get a collective
system of food fundamentals, to create space for a timely upgrades, acceptance, and evaluation
of existing standards regarding food standards and also to encourage distribution of food data.
The cooperation agreement between the Australian competition and the consumer
protection, the New Zealand Commission of Commerce and the Secretary of Trade and Industry
in the U.K. entails the application of competition and consumer laws.The above-stated
agreement stipulated that the participants should share their perception on cooperation and
coordination concerning their conduct and the endorsing activities in cases where they may lead
to a more effective remedy of the participant's various competition and consumer code issues
than it would be achieved through free action.
The participants were also to identify the procedure of enforcement that would be
involved in the competition and consumer laws as they differ as per country and in specific as to
the function played by the local and federal enforcing authorities.
The participants are also required to share their perspectives to ensure that the relevant local and
regional enforcement entities with whom the information is shared are aware of the terms and
conditions of this arrangement. This also enables them to be motivated to cooperate with the
participants as long as they are allowed by their respective national laws, endorsement policies
and other crucial interests that aligned with the terms of such an arrangement.

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The purpose of the agreement is to encourage cooperation and coordination among the
participants. It also assessed the extent to which such an arrangement is compatible with the
interests of the participants in the application of laws regarding consumer and competition laws
as participants strive to minimize any arising adverse impact following the endorsement
activities on the other company interests in exercising their competition and consumer laws.
The effect of agreements of Nestle
A good illustration is the contract requiring Nestle to participate in selling a select one-
decade permit for Pfizer's S-26 and SMA brands which is to be preceded by another version of
one-decade blackout phase and Nestle would be barred from venturing back to the business
sector with Pfizer's brands. Such conditions of such an agreement enable the external supplier to
win the permit allowing them to obtain the commodities from Nestle with a perception that in
due time they will begin manufacturing their specific baby nourishment products (SBS, 2016). In
between the 10-year blackout, no one in Australia will be permitted to sell the brands; however,
it is believed that the selected supplier would at this juncture be selling their manufactured
products.
In conclusion, it is evident that Nestle is impacted by some regulations in the Australian
food industry. However, Nestlé has maintained its stance in adhering to such requirements to
ensure that it operates ethically and responsible to its customers. However, some bills such as the
slavery bill will hurt consumers as Nestle raised concerns that such costs may be transferred to
the consumers. This will mean that consumers will have to pay more for Nestle products. Also,
Nestlé is obliged to follow some international agreements in the country where it operates.

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References
Agriculture Victoria, 2017. Legislative and Governance Forum on Food Regulation (FoFR).
[Online]
Available at: http://agriculture.vic.gov.au/agriculture/food-and-fibre-industries/food-regulators-
forum/victorias-regulatory-food-framework
[Accessed 4 May 2019].
Bloomberg, 2019. Company Overview of Nestle Australia Ltd. [Online]
Available at: https://www.bloomberg.com/research/stocks/private/snapshot.asp?
privcapId=12722296
[Accessed 3 May 2019].
Food Standards, 2015. Food law, treaties and agreements. [Online]
Available at: http://www.foodstandards.gov.au/about/foodlawandtreaties/pages/default.aspx
[Accessed 4 May 2019].
Food Standards, 2015. Food safety standards (Australia only). [Online]
Available at: http://www.foodstandards.gov.au/industry/safetystandards/Pages/default.aspx
[Accessed 4 May 2019].
Ghosh, D., 2014. Food safety regulations in Australia and New Zealand Food Standards. Science
of Food and Agriculture, 94(10), pp. 1970-1973.
Hasse, L., 2016. The Evolution of Food Regulation and Food Standards Australia New Zealand.
Reference Module in Food Science, 62(5), pp. 1452-1458.

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IBIS World, 2019. Nestle Australia Ltd. [Online]
Available at: https://www.ibisworld.com.au/australian-company-
research-reports/manufacturing/nestle-australia-ltd-company.html
[Accessed 3 May 2019].
LeNoir, R. T., 2015. Global Legislation for plastic materials in contact with food. Food
Science,Technology and Nutrition, 2(1), pp. 77-108.
New Zealand Government, 2019. Food safety. [Online]
Available at: https://www.mpi.govt.nz/law-and-policy/legal-overviews/food-safety/
[Accessed 4 May 2019].
SBS, 2016. EPISODE 9: Food for Thought - Food Colours. [Online]
Available at: https://www.sbs.com.au/shows/foodinvestigators/listings/detail/i/2/article/3431/
Episode-9-Food-For-Thought-Food-Colours
[Accessed 4 May 2019].
Statista, 2019. Total number of Nestlé employees worldwide from 2008 to 2018 (in 1,000s).
[Online]
Available at: https://www.statista.com/statistics/255203/total-number-of-nestle-employees-
worldwide/
[Accessed 3 May 2019].
The Departmen of health, 2016. Food Standards Australia New Zealand. [Online]
Available at: http://www.health.gov.au/internet/main/publishing.nsf/content/404ref.htm
[Accessed 4 May 2019].

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