Welcome to the Boycott Nestle Now Campaign! Please excuse the poor quality of this site but it was put together hurriedly at very short notice.
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Why Boycott Nestlé?
Neslté is pursuing a legal battle against Ethiopia, the poorest country in the world, to look for $6m in compensation for a subsidiary company the former military government in Ethiopia nationalised in 1975. This comes at a time when the country is already strapped for cash and facing its worst famine since 1984. Below is an article from the Guardian giving the full details of the dispute.
Guardian Article
The multinational coffee corporation, Nestle, is demanding a $6m (£3.7m) payment from the government of the world's poorest state, Ethiopia, as the country struggles to combat its worst famine for nearly 20 years.
The money is compensation for an Ethiopian business which the previous military government nationalised in 1975. It could feed a million people for a month, according to Oxfam.
The cash-strapped Ethiopian government has offered to pay $1.5m to settle the claim, but yesterday Nestle, which bought the firm's German parent company in 1986, was standing by its demand, insisting it was a "matter of principle".
"In the interest of continued flows of foreign direct investment which is critical for developing countries, it is highly desirable that conflicts are resolved according to international law and in a spirit of fairness," a spokesman for the company said.
Nestle's chief executive, Peter Brabeck-Letmathe, acknowledged three years ago that the company had responsibilities beyond its bottom line. "We are going to be asked: what have you done to fight hunger in developing countries?" he said.
Last month Ethiopia's prime minister Meles Zenawi said that 6 million people in his country needed emergency food aid and that the number could rise to 15 million within months.
The famine, brought on by the failure of rains for the third year in a row has been intensified by a collapse in the price of coffee which supports a quarter of the country's population. Nestle, the world's largest coffee processor, made $5.5bn in profits last year.
Aid agencies have reacted furiously to the company's demand.
"At the very least Nestle ought to be accepting the settlement offered by the Ethiopian government," said Sophia Tickell, a policy analyst at Oxfam. "But frankly they should be thinking about how the money could be spent on famine relief and drop the claim altogether."
Ethiopia has the lowest income per head in the world, with the average person surviving on $100 a year. More than a tenth of its children die before their first birthday.
Aid agencies are worried that the crisis could be even worse than the 1984 disaster in which a million people died.
"Drought is threatening many farmers with the prospect of famine," Ms Tickell said. "Nestle, by contrast continues to thrive. The company does not need $6m. It is a highly profitable company which could easily live up to its commitment to 'help fight hunger in developing countries' by writing off this claim."
The World Bank has stepped in to negotiate, but there were few signs yesterday that the company was preparing to back down. "This is a question of principle. The negotiations are ongoing and it would be rash to predict an outcome at the moment," Francois Perroud of Nestle said.
In 1986 Nestle bought a German company, Schweisfurth Group which had a majority share in the Ethiopian Livestock Development Company (Elidco) seized by the Ethiopian government more than 25 years ago. The government sold Elidco to a local firm for $8.7m four years ago.
Although the exact size of Schweisfurth's share in Elidco is uncertain, the Ethiopian government is willing to pay$1.5m - just over half the value of the company at the time of nationalisation including interest. But Nestle is insisting it convert the payment at 1975 exchange rates, adding a further $4.5m to the bill.
"It is perfectly appropriate to try and find a solution to a conflict which has existed since 1975," Mr Perroud said. "We are the owners of a claim against the Ethiopian government."
Nestlé believes the issue should be put into context:
In 1975, the then government of Ethiopia expropriated all foreign owned corporations. Among them was ELIDCO (Ethiopian Livestock Development Company), in which the Schweisfurth Group (Germany) held a majority participation. Negotiations with the Ethiopian Compensation Commission were started in 1978. In August 1998, ELIDCO was sold by the Ethiopian government to a local private company for $8.73 million.
Nestlé acquired the Schweisfurth Group in 1986 and, as legal successor, also inherited the compensation claims against the Ethiopian government. In 2001, the authorities decided to settle the issue with the help of the Multilateral Investment Guarantee Agency (MIGA) of the World Bank. Proposals for compensation of the expropriated companies were made and negotiations are on-going. These negotiations are presently concentrating on technical points, such as exchange rates.
In the interest of the continued flow of foreign direct investment, which is critical for developing countries, it is highly desirable that conflicts are resolved according to international law and in a spirit of fairness. A solution in this case will constitute an important step in re-establishing the confidence of potential foreign investors, which is clearly in the interest of the Ethiopian population and the country's economic development. Nestlé will therefore continue to cooperate with the World Bank and with the Ethiopian authorities in order to come to a solution.
Furthermore, Nestlé commits itself to invest the proceeds of the compensation negotiation in a long-term, viable investment in Ethiopia which will contribute to the economic development of the country. As always, Nestlé will also respond to requests for help to alleviate the suffering of the population that is presently threatened by the food shortage.
Nestlé -V- Ethiopia
To highlight the injustice of what Nestle is doing, here are the stats of the two:
Nestle Group
Federal Democratic Republic of Ethiopia
Comment
The simple fact about it is that people are dying of hunger in Ethiopia as I type this and Nestlé are "concentrating on technical points, such as exchange rates."
What has enraged me is the fact that the Ethiopian government offered Nestlé $1.5m in compensation, $1.5m which they don't have to give, and Nestlé had the cheek to turn this down and push for the full $6m to be repaid. They justify this by saying "In the interest of the continued flow of foreign direct investment, which is critical for developing countries, it is highly desirable that conflicts are resolved according to international law and in a spirit of fairness." Corporate beaureaucrats are trying to bleed Ethiopia dry and it is sickening to see this frightening form of globilisation at work here. $6m is nothing to a company such as Nestlé which last year made a profit of $5.5bn!
Soluble coffee: Nescafé, Taster's Choice, Ricoré, Ricoffy
Roast & ground coffee: Nespresso, Bonka, Zoégas, Loumidis
Water: Nestlé Pure Life, Nestlé Aquarel, Perrier, Vittel, Contrex, S. Pellegrino, Valvert, Panna, Levissima, Vera, Fürst Bismarck, Viladrau, Arrowhead, Poland Spring, Zephyrhills, Santa Maria, La Vie
Other beverages: Nestea, Nesquik, Nescau, Milo, Carnation, Libby's, Caro
Dairy products: Nestlé, Nido, Nespray, Ninho, Carnation, Milkmaid, La Lechera, Moça, Klim, Gloria, Svelty, Molico, Nestlé Omega Plus, Bear Brand, Coffee-mate, Nestlé, LC1, Chamyto, La Laitière, Sveltesse, Yoco, Svelty, Molico
Breakfast cereals: Nestlé
Infant foods: Nestlé, Nan, Lactogen, Beba, Nestogen, Cérélac, Neslac, Nestum, Guigoz
Performance nutrition: PowerBar
Clinical nutrition: Nutren, Peptamen, Modulen, Build-up, Nesvita
Culinary products: Maggi, Buitoni, Crosse & Blackwell, Libby's, Thomy, Stouffer's
Ice cream: Nestlé, Frisco, Motta, Camy, Savory, Peters
Refrigerated products (yogurts, desserts, pasta, sauces): Nestlé, Buitoni, Herta
Chocolate and confectionery: Nestlé, Crunch, Cailler, Galak/Milkybar, KitKat, Quality Street, Smarties, Baci, After Eight, Baby Ruth, Butterfinger, Lion, Aero, Polo, Frutips, etc.
FoodServices and professional products: Chef, Davigel, Minor's, Santa Rica
Petcare: Friskies, Fancy Feast, Alpo, Mighty Dog, Gourmet, Mon Petit, Felix
Flavours for the food industry: Food Ingredients Specialities (FIS)
Pharmaceutical products: Alcon, Galderma
Cosmetics: L'Oréal
Join the Campaign!
Basically, I would like to hit Nestlé where it hurts, their pockets. Join the Boycott Nestlé Now Campaign by refusing to buy their products listed above and collectively, we can make a difference. I know it is difficult to do so because they are one of the largest food conglomerates in the world but I would urge you to make a concerted effort because people are dying of famine in Ethiopia and $6m can feed 1m people for one month. Think about that every time you see any Nestlé product especially when you're going Christmas shopping and you see those selection boxes! Buy non-Nestlé products!!!
This website was created by David Traynor. E-mail me here with your ideas or support!