Nestle to leverage startups in a bid to improve sales

In line with its open innovation platform Henri@Nestle in the US, the Swiss multinational is planning to engage Indian startups to create new products, ramp up communication for its brands and stay relevant in the digital age. Through Nestle’s open innovation platform, Henri@Nestle, the company created virtual reality applications for its Milo malt powder that may be adopted soon by some of its other food brands. Consumers can use their smartphones to scan Milo’s packaging which triggers an avatar talking about health tips.

The company wants to engage with the startups to solve a number of high priority points such as engaging millennials in cooking, making alternatives to PET bottles for packaged drinking water and creating packaging innovations to reduce obesity in kids by stopping them from reaching out for more than recommended portion sizes for a Nestle biscuit brand. Each task has a specific amount of funding provided by Nestle, and startup’s technology/vision are leveraged in finding solutions to the above problems.

Besides Nestle, other big FMCG firms such as Danone and Kelloggs are also leveraging startup ecosystem with both the firms launching their own VC funds that are on lookout to make investments in companies pursuing next generation innovations.