Agriculture Reference
In-Depth Information
Nooyi is also important in academia in her influential and powerful roles at Yale University; she is
on the governing board of the Yale Corporation, its policy-making body. As a member of the board of
Tsinghua University—the foremost university in China, where both the country's president and its vice
president obtained engineering degrees—she is well placed to know the most influential policy makers in
China.
China, India, and other developing countries are of increasing importance to PepsiCo and other mul-
tinational food corporations. These companies, seeking endlessly increasing quarterly profits, find it most
advantageous to produce and process food in developing countries. Cheaper labor, less vigilant environ-
mental regulation, compliant governments, and the opportunity to develop new markets for processed food
provide a panacea for the largest and most aggressive food corporations in the world.
China and the developing world are also critical for the business strategy of food multinational Nestlé. Al-
though based in Switzerland, it has the second-largest sales in the United States and the largest sales in
the world. 21 In the summer of 2011 Nestlé acquired 60 percent of the Chinese candy maker Hsu Fu Chi
International for the hefty sum of $1.7 billion. This acquisition brings Nestlé closer to its goal of earning
45 percent of its sales from the developing world over the next ten years. China is quickly becoming the
largest market in the world for candy. 22
Nestlé was founded in the last quarter of the nineteenth century, when two competing companies merged
and expanded throughout Europe and the United States. Although it originally sold condensed milk-based
products, baby food, chocolate, and similar items, by World War II, when Nestlé introduced Nescafé, the
instant coffee provided to U.S. soldiers, the company had become very successful.
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