Nestle SA Reg Shs. Ser. B Spons (ADR) (OTCMKTS:NSRGY) ended the last trading session almost flat with a negligible gain of only 0.05%. The volume of the day at 363,000 was slightly lower than the daily average of 388,000, reflecting the current corrective nature of the price action. From a broader perspective, the uptrend is not only totally intact despite the short term weakness, it is well supported by a long term trendline as shown on the chart attached. The current short term correction can drag the price down some more but as long as the price stays above $72, the bulls are safe.
Nestle SA Reg Shs. Ser. B Spons (ADR)(OTCMKTS:NSRGY) plans to begin Maggi noodles sales in India coming month. The company has been facing a public relation issue in India, a growing consumer products industry, after a countrywide halt on its noodles back in May. The restriction on sales was placed after local regulators said that some Maggi Noodles packets were found to have impermissible levels of lead content. The company, which has repeatedly claimed Maggi to be safe, was forced to recall instant noodles a month later, costing it close to 66 million Swiss francs.
The measures
Nestle has commenced manufacturing instant noodles and will sent Maggi samples from these new batches for testing. Once the samples receive safe-tag from the labs, then only Nestle will resume Maggi sales in India. A spokesman of company said that resumption of instant Maggi Noodles is expected to commence in November. However, Nestle officials declined to say anything on the timing of sales resumption.
The buzz
The one product other than Maggi that would be highlighted in this article is Gerber Baby food. There are many people who are fond of the Gerber baby food commercials and even remember the baby face featured in the advertisement. Gerber, which was previously an American firm, is now proprietary of Nestle. Although the firm retains some factories in the country for its infant formulas, a large percentage of Gerber baby food items are produced outside the U.S.
The highlights
Although the entity is not as accommodating as leading firm Levi Strauss with its list of facilities, Nestle lists Venezuela, Mexico and also Poland as affiliated nation sites that buyers can check on its corporate page, indicating that these are some of manufacturing plants in these regions outside the U.S.
