Nestl� chief executive Paul Bulcke is not one for a break, but he loves his Kit Kat

By Jonathan Sibun Published: 8:14PM GMT twenty-one February 2010

Paul Bulcke describes the Nestle proceed of operative as "une force tranquille" - delivering industry-leading enlarge Photo: K. Skeie

The arch senior manager of Nestl has usually denounced industry-leading enlarge for 2009 and voiced a SFr10bn (�6bn) share buy-back programme, but critique of the world"s greatest food association is about a lot some-more than numbers.

The ban list of adjectives comes from a new consult conducted by Bernstein, the investment house, asking Nestl shareholders for their views of the Kit Kat-to-Nescaf maker. Sitting in his bureau in the large Swiss locale of Vevey, unaware a mist-covered Lake Geneva, I ask Bulcke either the critique has struck a chord.

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"I think we have to work on it," he says. "When you listen to that, when you see that, and when you ask the question, it equates to we have to work on it."

It is an scarcely straightforward acknowledgment from the arch senior manager of a association that is eminent for keeping the own counsel.

Nestl is the Swiss classify successful, efficient, unchanging but notwithstanding the place at the tip of the food chain, the organisation has been underrated by investors for the most appropriate piece of twenty years.

It is not as if Nestl is not producing results. On Friday the association denounced a 4.1pc enlarge in organic sales to SFr108bn, distinction margins up 0.4pc to 14.6pc and a foresee of higher expansion to come in 2010. Meanwhile, the association due a 14.3pc multiplication enlarge and a serve Sfr10bn share buy-back to come on tip of the SFr25 one voiced in 2007.

As Bulcke points out, opposite the backdrop of the misfortune tellurian retrogression since the 1930s, that is not to be sneezed at. "What we have since behind to the shareholders in new years is sizeable it"s going to be SFr45bn to SFr50bn. That"s not bad," he says, with counsel understatement.

Bulcke, a 55-year-old Belgian with the no-nonsense proceed of a Swiss, has played his piece in that success. He assimilated the association 31 years ago, and following stints in South America, Eastern Europe and North America, he took the tip office in Apr 2008. Bright, garrulous and smooth in 6 languages, he is enjoying the role, notwithstanding the challenges.

"It"s a unequivocally rewarding experience; difficult but rewarding," he says. "2008 and 2009 weren"t the easiest years to start, but if you have to have violent times, improved they be at the beginning. I idea it"s not regularly going to be similar to that."

The enticement for Bulcke on receiving over from former arch senior manager Peter Braebeck would have been to stamp his symbol on the commercial operation by bringing about indiscriminate change. That has not happened. "We don"t do revolutions, we are evolutionary," Bulcke says. "You have to watch out with series since infrequently you do it for your own sake, some-more than for the great of the company. You can do things that tumble short some-more than they build."

Changes have been finished not slightest to spin around the fortunes of Nestl"s waters business, the usually multiplication to show a rebate in sales in 2009 but Bulcke, in a evil linguistic flourish, says they were finished but formulating "a hoopla".

"There is a lot of change. The most appropriate proceed of describing Nestl is "une force tranquille". There is appetite in there but it is not endangered or hectic. It"s similar to when you watch Federer. He plays in a proceed that creates it see easy but it is not. That is what it"s similar to when you begin to be unequivocally great at what you do."

Much of that success, according to Nestl insiders, comes from a concentration on the prolonged tenure the association is obvious for the 50-year formulation meetings.

"What we are is long-term inspired. We"re never going to give up on the prolonged tenure in office of short-term gain," Bulcke says.

Does that indicate the association would be happier out of the open markets? "Why? Do you think usually in isolation companies can be long-term thinkers?" Bulcke shoots back, prior to receiving a appropriate at investors who are pulling for nearer-term change. Most shareholders will stay put. The Bernstein investigate suggests Nestl is a prime between investors, notwithstanding being undervalued. But the investigate additionally lifted alternative concerns, not slightest a miss of distinctness between investors over the company"s plans.

While most open companies select to guide shareholders towards their intentions on acquisitions or otherwise, the Swiss organisation keeps the cards resolutely to the chest.

Nestl was thought to be study a opposition suggest to Kraft"s takeover bid for Cadbury, but Bulcke refuses to contend either such a move was considered. "I"m not going to answer this since it"s irrelevant. It"s over."

The same goes for Nestl"s intentions for L"Oreal, the French war paint organisation in that it binds a 30pc stake, or the plans for the have make have use of of of of the $28bn (�18bn) deduction from the sale of a 52pc holding in Alcon, the eyecare group, in Jan this year.

Investors are well known to be endangered that Nestl could bid for the residue of L"Oreal, a move most would oppose. The Bernstein note cited this as an additional area of criticism.

"People competence have questions that we can"t or don"t wish to answer. We don"t answer since it would be all inappropriate," Bulcke says.

Confusion additionally reins between a small shareholders over Nestl"s senior manager strategy. The pushing idea of being the world"s heading nutrition, health and wellness (NHW) association should be clear, but Nestl"s $3.7bn merger of Kraft"s solidified pizza commercial operation in the US last month has doubtful many. Some described arch monetary military officer Jim Singh"s efforts to transparent the understanding as "laughable", indicating out that fast food is frequency at the tip of the full of health eating lists.

Bulcke not one to humour fools is carrying nothing of that, and seizes the possibility to "clarify a couple of things".

"It would be simpler infrequently to contend we won"t do this or that, but afterwards you"re going to get so slight that you tumble out of your own shoes," he says. "That"s not what we wish we wish to be broad-based."

The plan is not about stocking only full of health foods, Bulcke argues, it is about offered "pleasurable" products but perplexing to have make have use of of of full of health ingredients, or at slightest educating people about full of health consumption.

"Pizza you similar to it, I similar to it, I"m going to eat it tomorrow. They can contend whatever I am going to eat it," Bulcke explains. "Now if you eat a family pizza by yourself each day, you have a problem. But if Nestl can move a small ability to that…"

While the plan competence have something of the Swiss fudge about it in conditions of health and wellness, it has clarity. Investors should at slightest acquire that.

And what of those who protest that Nestl"s have make have use of of of of the change piece is emasculate since the new deduction of the Alcon sale?

"You have to see it in context. We are proposing to enlarge the dividend, we are shopping behind shares and there is investment coming," Bulcke says.

"We are going to have a full of health change sheet. We have regularly been obliged in the government of cash."

Leveraging the change piece has to be finished wisely, he adds, referring to the monetary crisis: "You can precedence out of balance. Was that not what happened lately?"

So is he happy with Nestl"s SFr18bn of debt is it the optimal level? "Optimal doesn"t exist since it depends how unsure you wish to be, but this is a docile one, definitely."

Bulcke"s tinge suggests there is small room for argument. But were he a small less Swiss in his ways, he competence additionally point out that does not meant Nestl is not listening, as a small investors have suggested. Perhaps, as he prepares to encounter investors at a London-based roadshow on Tuesday, it is time for Bulcke to have that clear.

CV

Chief senior manager Nestl

Nationality: Belgian

Family: Married with 3 young kids

Career: Scott Graphics International 1977-79; Nestl 1979-

Skills: Speaks 6 languages; precision for pilot"s looseness