| "Milo is not one of our bestselling brands in the country and we are scrutinising our options for it very closely," Nestle India chairman and managing director Carlo Donati said while inaugurating a Cafe Nescafe outlet at Gurgaon on Thursday. |
| Citing the example of Pure Life, the packaged water brand, which was gradually pulled out of the market last year after lacklustre sales, Donati indicated that the company is not averse to rolling back a non-performing brand. The same year, the company also withdrew from the pickles market. |
| Another senior Nestle India executive later told Business Standard that the company sees a potential to grow Milo in the future and is looking at ways and means to improve its performance. |
| Commenting on the company's 5.5 per cent domestic sales growth in the quarter ended March 31, Donati said it wasn't all that alarming in the present market scenario. |
| "In a period where interest rates are very low, consumers will invest more in durables rather than on FMCGs,'' he said. FMCG companies have complained of downtrading on account of higher household spend on consumer durables. Nestle's net profits declined 13.8 per cent in the same period. |
| Donati was hopeful that the current quarter would be a good one as the effect of last year's good monsoons would translate into increased consumer spending on FMCGs. |
| "The multiplier effect of good consumer durables sales will be good for companies like us in the long run," Donati added. |
| The company is targeting more on premise and institutional Cafe Nescafe outlets this year. Nestle has positioned these cafes as takeaway joints serving the company's hot and cold beverages, dairy products and snacks. |
| "We will look at workplaces like call centres which have a large number of young employees," said Donati. At these cafes, Nestle will also sell its other food products at a discount of five per cent. |
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