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

   

Added on  2023-04-25

11 Pages2541 Words443 Views
INTERNATIONAL BUSINESS 1
International Business
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INTERNATIONAL BUSINESS 2
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)

INTERNATIONAL BUSINESS 3
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

INTERNATIONAL BUSINESS 4
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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