Please ensure Javascript is enabled for purposes of website accessibility

Nestle Tells Workers to Prepare for Pandemic 'Storm' to Hit

By Rich Duprey - Mar 23, 2020 at 2:12PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The consumer products giant says the full impact of the coronavirus has yet to come.

With the coronavirus pandemic still leading to empty shelves at grocery stores, global consumer goods giant Nestle (NSRGY 3.09%) told employees they need to exert even more effort to ensure the food and drink they produce makes it to store shelves.

In a memo sent to its workers, Nestle CEO Mark Schneider said doing extra now is essential. "Please get ready for the storm to hit," he added, "because hit it will." Nestle employs over 290,000 workers globally.

Lighthouse being battered by rough seas

Image source: Getty Images.

Prepare for the worst

Retailers such as Walmart (WMT 0.08%) have begun hiring more employees to aid in meeting the crush of demand its stores have seen since the pandemic began. To reward them for their efforts thus far, the retailer has raised their pay and given bonuses to hourly workers totaling $550 million.

Yet it has also reduced store hours -- twice -- to give its employees ample time to restock their shelves, which quickly run out of basic items like meat, bottled water, cleaning products, and sanitizers.

Nestle owns a stable of household brands, including Poland Spring and Deer Park bottled water, but also frozen foods such as DiGiorno, Hot Pockets, and Lean Cuisine, as well as beverages like Nesquik, Ovaltine, and Nescafe coffee.

Schneider told Nestle's frontline workers and factory help their commitment was critical to maintaining business continuity. He also said it was important the company be able to secure supplies, manufacturing, and logistics, while building up inventories of critical supplies and products to be able to ship to areas that have yet to be affected by the coronavirus. 

 

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Nestle S.A. Stock Quote
Nestle S.A.
NSRGY
$116.87 (3.09%) $3.50
Wal-Mart Stores, Inc. Stock Quote
Wal-Mart Stores, Inc.
WMT
$123.72 (0.08%) $0.10

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
321%
 
S&P 500 Returns
111%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 06/24/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.