Nestlé Health Science S.A.: The race to the middle
In June 2010 Peter Brabeck, chairman of Nestlé, made a presentation to the company’s board of directors outlining what he believed was a major long-term opportunity facing the company. Peter thought that Nestlé should enter the “market space” between the traditional food and beverage industry and the pharmaceutical industry by creating foods that could delay or even prevent illness such as diabetes and Alzheimer’s. Such disease-modifying foods had to date been created by only a few firms. But with aging populations in the developed world, rising health care costs and continued advances in food science, Peter had no doubt that more and more pharmaceutical companies, working from their science base, and food companies, working from their market knowledge and brand strength, would be attracted by the opportunity. The challenge for Nestlé was to move more decisively and quickly to the middle ground between the two existing industries, hence his characterization of the situation as a “the race to the middle.”
The purpose of this case is to understand the role of a vision in reshaping the company and the need for its CEO to get buy-in from the board. In addition, the case gives readers an opportunity to look at the implications of the vision on a specific part of the organization in terms of organizational design (Neslé Health Sciences).
Nestlé
2010-2011
IMD retains all proprietary interests in its case studies and notes. Without prior written permission, IMD cases and notes may not be reproduced, used, translated, included in books or other publications, distributed in any form or by any means, stored in a database or in other retrieval systems. For additional copyright information related to case studies, please contact Case Services.
Research Information & Knowledge Hub for additional information on IMD publications
![](https://www.imd.org/ibyimd/wp-content/uploads/2023/10/AdobeStock_466698922-1-720x630.jpeg)
Understanding your organizational capacity for agility and responding to events accordingly is the key to success in the new business environment, ...
![](https://www.imd.org/ibyimd/wp-content/uploads/2024/06/AdobeStock_279581139-720x630.jpeg)
In a post-pandemic era shaped by wars, climate change, and new technologies, Maha Hosain Aziz outlines the main risks and shock events that could d...
The case study examines recent aviation safety concerns at Boeing, focusing on manufacturing issues, leadership decisions and regulatory oversight....
![](https://www.imd.org/ibyimd/wp-content/uploads/2024/06/CEODialogue-MargheritaDellaValle-IbyIMD-LandingPage-Podcast-1200x680-1-720x630.jpg)
Margherita Della Valle tells IMD President Jean-François Manzoni how she is delivering radical change to reenergize Vodafone and paving the way for...
The case is seen through the eyes of the newly appointed supply chain director at a cosmetics company based in Berlin. The general manager has task...
Few Business to Business (B2B) marketplaces have succeeded. Metalshub has successfully combined a software platform as a service, with a marketplac...
The case focuses on Contabilizei, a Brazilian startup providing online accounting services for small and medium-sized enterprises (SMEs). The case ...
![](https://www.imd.org/ibyimd/wp-content/uploads/2024/05/General-image-banner-16-720x630.jpg)
IMD's Niccolò Pisani examines how a combination of clear-eyed analysis and a strong sense of purpose allowed the French biopharma to change course.
Companies that modularize and externalize their best capabilities are in a strong position to seize unexpected opportunities. Prediction is hard. T...
![](https://www.imd.org/ibyimd/wp-content/uploads/2024/06/UEFA-Featured-720x630.jpg)
Leading Chinese companies are preparing to take advantage of exposure and opportunities as top sponsors and suppliers to the UEFA EURO 2024 Men’s S...
Research Information & Knowledge Hub for additional information on IMD publications
in I by IMD 24 June 2024
Research Information & Knowledge Hub for additional information on IMD publications
Research Information & Knowledge Hub for additional information on IMD publications
Research Information & Knowledge Hub for additional information on IMD publications
Research Information & Knowledge Hub for additional information on IMD publications
Case reference: IMD-7-2457 ©2024
Research Information & Knowledge Hub for additional information on IMD publications
Case reference: IMD-7-2546 ©2024
Research Information & Knowledge Hub for additional information on IMD publications
Research Information & Knowledge Hub for additional information on IMD publications
in MIT Sloan Management Review Summer 2024, vol. 65, no. 4
Research Information & Knowledge Hub for additional information on IMD publications
Research Information & Knowledge Hub for additional information on IMD publications