Nestle 1Q17 Earnings Call Notes

Mark Schneider

Weak consumer demand in US

Celine, this is Mark. On the US, I think there’s a general observation here and that is pretty weak consumer demand and that’s not a particular issue here for Nestle. I think that’s all throughout. That typical transmission belt we’ve seen in the past between good economic performance as measured by GDP and then consumer spending, that doesn’t seem to be working one for one this time. And so category by category, whether it’s us or anyone else, what you’re seeing is fairly soft demand, even in the face of pretty good fundamental economic data. The one area that does stand out a little bit, Fran├žois pointed to it is petcare. I think here, we’ve seen a soft quarter. We had some issues in particular in drydock and I think we’re moving aggressively to fix those. So I’m more optimistic for the rest of the year.