8th January 1934
Nestle

Nestle

Nestlé was formed in 1905 by the merger of the 'Anglo-Swiss Milk Company', which was established in 1866 by brothers George and Charles Page, and 'Farine Lactée Henri Nestlé' founded in 1867 by Henri Nestlé. The company grew significantly during World War I and again following World War II, expanding its offerings beyond its early condensed milk and infant formula products.

Nestlé felt the effects of the Second World War immediately. Profits dropped from US$20 million in 1938 to US$6 million in 1939. Factories were established in developing countries, particularly in South America. Ironically, the war helped with the introduction of the company's newest product, Nescafé ('Nestlé's Coffee'), which became a staple drink of the US military. Despite that, Nestlé actually supplied both sides in the war: the company had a contract to feed the German army. Nestlé's production and sales rose in the wartime economy.

The end of World War II was the beginning of a dynamic phase for Nestlé. Growth accelerated and numerous companies were acquired. In 1947 Nestlé merged with Maggi, a manufacturer of seasonings and soups.

Source: Wikipedia

Food giant Nestle said Monday it is paying 25m Swiss francs ($14.6m) into a settlement with Holocaust survivors and Jewish organisations to meet possible claims over use of slave labor during World War II.

'It is either certain or it may be assumed that some corporations of the Nestle Group that were active in countries controlled by the National Socialist (Nazi) regime employed forced labourers,' the group said in a statement.

It said it would contribute to a $1.25bn settlement agreed by Switzerland's two largest banks.

'Nestle expects this contribution to cover all possible legal claims that might be raised against it both in Switzerland and abroad,' the statement added.

Nestle companies operating in Germany and Austria will make voluntary contributions to those countries' foundations to compensate slave labourers, it said, but did not specify amounts.

Some Swiss companies allegedly used slave labour in German subsidiaries or subsequently took over implicated German companies. Nestle has said that, in 1947, it acquired a company that had used forced labor in the Nazi era.

Under huge pressure, the two banks - Credit Suisse and UBS AG - reached their out-of-court settlement in August 1998. This provided for the release of all claims not only against the two banks but also against the Swiss government, the central bank, other commercial banks and Swiss industry.

But when U.S. District Judge Edward Korman approved the settlement 26th July, he stated that 'those Swiss entities that seek releases (from slave labour claims) are directed to identify themselves ... within 30 days.'

Switzerland's main employers' organisation urged any company which might have used Nazi forced labour to come forward.

Nestle said that it in many instances did not own the corporations involved at the time and was often unable to 'exercise effective control' over those it did.

'As the legal successor of such corporations, Nestle nevertheless accepts its moral responsibility to help alleviate human suffering,' the company said.

Source: independent.co.uk (28th August 2000)

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