Brabeck-Letmathe: Nestle chairman about inconvenient truths

Washington / DC. (prn) In two major addresses Peter Brabeck-Letmathe, Chairman of Nestle S.A., linked the current food crisis and water shortage concerns to governments around the world that endorse biofuels production which leads to massive withdrawals of freshwater.

«Efforts for sustainability and efforts against unsustainable trends and imbalances are the responsibility of everybody, and thus, as chairman of Nestle, I start by taking responsibility for myself and my company», said Brabeck-Letmathe, who heads the world´s leading Nutrition Health and Wellness company. «The argument for biofuels mainly started as one for using wood and plant leftovers, whilst the reality is that it is mainly food, like corn, that is used. (There is) a need for new approaches-often changes in paradigm – and an urgent need, in particular to change public policy and improve transparency».

Brabeck-Letmathe added that the water crisis that was predicted to take place in 2025 could occur much earlier because of the biofuels efforts that require heavy subsidies and other support measures that are occurring in the United States, Europe, China, India, South Africa and Colombia.

During his speeches before the Annual Meeting of the International Monetary Fund at the World Bank and at Georgetown University, Brabeck-Letmathe spoke of Nestle´s own sustainability initiatives. During the last few years, Nestle achieved a reduction of overall freshwater withdrawals for factories and other activities from 4,5 to less than 1,8 litres per US-Dollar of sales. According to a study by JP Morgan, Nestle is one of the leaders in water efficiency in its sector.

Brabeck-Letmathe further explained that high prices increase the pressure to improve efficiency. «But when you start only after prices have gone up, you are too late. Improving efficiency and lowering the cost of goods sold is a constant effort – at NestlA(C) they are part of a series of programs that started when I took over as CEO, efforts that continue, expanding even deeper in the value chain», he said.

About: An economics graduate of the University of World Trade in Vienna, Brabeck-Letmathe joined Nestle in 1968. He spent a significant part of his career in the company´s Latin America locations, including Chile, Ecuador and Venezuela. In 1987 he was transferred to Nestle´s international headquarters in Vevey, Switzerland as Senior Vice President in charge of the Culinary Products Division, with a worldwide responsibility for that sector. He was appointed Executive Vice President in 1992. Appointed Nestle´s CEO in 1997, Brabeck-Letmathe assumed the office of Vice Chairman of the Board in 2001. He was named Chairman in April 2005 and continued to serve as CEO, retiring from the position in April 2008. Today Brabeck-Letmathe serves as a member of the Boards of Directors of Credit Suisse Group, Roche Holding S.A., and as Vice Chairman of L’Oreal. He is a member of the European Round Table of Industrialists (ERT) and serves as a member of the Foundation Board of the World Economic Forum.