MARIA: WELCOME BACK, BEIJING IN
A BIND, PRESIDENT TRUMP TALKING
TOUGH ON TRADE PROMISING TO
REBUILD THE UNITED STATES AFTER
YEARS OF UNFAIR TRADE PRACTICES,
WATCH THIS.
>> WE'VE TAKEN THE TOUGHEST EVER
ACTIONS IN RESPONSE TO CHINA'S
ABUSIVE TRADE PRACTICES AND WE
ARE DOING IT VERY WELL WITH
CHINA, VERY WELL AND I HAVE A
LOT OF EXPECT FOR CHINA AND I
HAVE TREMENDOUS RESPECT FOR
PRESIDENT XI OF CHINA BUT THIS
500 BILLION.
MARIA: THIS COMES AS SOME OF THE
ADMINISTRATION ADVISERS ARE
URGING THE PRESIDENT TO IMPOSE A
25% TARIFF ON $20 BILLION WORTH
OF CHINESE GOODS, SIGNIFICANT
BOOST FROM THE ORIGINAL
JOINING US STEVE, STEVE, GOOD TO
SEE YOU, THANK YOU FOR JOINING
US THIS MORNING.
>> GOOD MORNING, MARIA, THANKS
FOR HAVING ME.
MARIA: YOU'RE OVERSEEING WHAT
HAS BEEN EXPANSION IN THE U.S.,
HAVE YOU FELT THE PRESSURE OF
THE ESCALATING TARIFFS?
>> WE BELIEVE THAT OPEN TRADE IS
THE RIGHT THING FOR CONSUMERS SO
LONG-TERM THAT'S WHAT WE BELIEVE
IF WE CAN FIND GOOD TRADE
BALANCE BETWEEN THE MARKETS.
MARIA: SO WHEN THE PRESIDENT WAS
WITH EU COMMISSIONER YUNKER LAST
WEEK THEY SAID THEY WERE MOVING
TOWARD NO TARIFFS, NO SUBSIDIES
ON BOTH EUROPE AND THE U.S.,
GIVE US A PRACTICAL
UNDERSTANDING OF WHAT THAT MEANS
MEAN PRICES FOR GOODS WHETHER
IT'S COFFEE, CHOCOLATE OR
ANYTHING ELSE?
>> WELL, GOOD THAT YOU ASK THAT,
FOR US THE REALITY IN THE U.S.
THE MAJORITY OF OUR BUSINESSES
MANUFACTURED IN THIS COUNTRY FOR
THE COUNTRY AND OVER 50
FACTORIES, FOR US IT HAS LESS
IMPACT IN NESTLE IN U.S. THAN
COMPETITORS.
MARIA: IF THERE WERE NO TARIFFS
SIDE?
>> THERE ARE, I'M SPEAKING
SPECIFICALLY FOR THE U.S.
BUSINESS WE WOULD BE IN THE SAME
THE VAST MAJORITY OF PRODUCTS
ARE MANUFACTURED IN THE U.S. FOR
U.S. CONSUMERS.
MARIA: THE TRUMP ADMINISTRATION
IS IMPLEMENTING OVERHAUL OF
TAXES OH THIS -- THIS YEAR WITH
THE WAY TO 21%, CHANGED THE WAY
GOVERNMENT TAXES COMPANIES LIKE
NESTLE OPERATING MORE THAN 400
FACTORIES ACROSS 85 COUNTRIES,
TELL US ABOUT THE IMPACT ON YOUR
BUSINESS, THE ADMINISTRATION IS
NOW TALKING ABOUT ITS SECOND TAX
PACKAGE IN TERMS TO BUILD ON THE
CUTS, WHAT WOULD BE THE IMPACT?
>> WELL, WE THINK TAX REFORM WAS
A GOOD MOVE BY THE
ADMINISTRATION, OVERALL IT MAKES
THE U.S. A MORE ATTRACTIVE PLACE
TO INVEST, YOU MENTIONED RECENT
INVEST IN THE U.S., IT'S LARGEST
MARKET GLOBALLY AND TAX REFORM
STARBUCKS DEAL, WHEN DOES THAT
GET EXECUTED?
>> WE ARE VERY EXCITED ABOUT THE
STARBUCKS DEAL, WE EXPECT TO
CLOSE BY TEND OF THE AUGUST OF
THE DEAL AND FOR US IT'S ABOUT
BUILDING AN INCREDIBLY STRONG
NORTH AMERICA AND THE LARGEST
WITH STRONG BRANDS ON COFFEE
WITH U.S., EXPRESSO NEST COFFEE,
WE HAVE A GREAT PORTFOLIO OF
COFFEE TO GO AND WIN IN THE
MARKET.
MARIA: TELL US ABOUT BUSINESS
RIGHT NOW, WHAT WOULD YOU SAY
THE DEMAND PICTURE LOOKS LIKE IN
THE U.S. TODAY?
>> I'D SAY THE DEMAND PICTURE IS
GOOD, THE IMPROVING HEALTH OF
THE CONSUMER AND THE ECONOMY IS
GOOD FOR OUR INDUSTRY, RIGHT, SO
FOOD AND BEVERAGE CATEGORIES ARE
UP FOR THE FIRST TIME IN A
WHILE, WE HAVE SEEN RELATIVELY
FLAT TO STABLE CATEGORIES FOR
THE LAST FEW YEARS AND AS
CONSUMERS GET HEALTHIER AND JOB
NUMBERS GET BETTER, THE CATEGORY
LOOKS BETTER.
MARIA: ARE YOU EXPECT TO GO
RAISE PRICES?
>> GREAT QUESTION, I THINK FOR
US THE FIRST THING WE FOCUS ON
IS MAKE SURE THAT WE LOOK AT
REMOVING WHATEVER INEFFICIENCIES
WE HAD IN THE BUSINESS AND TRY
NOT TO MAKE SURE WE PASS ONTO
CONSUMERS, WE ARE SO
CONSUMER-FOCUSED ON DELIVERING
GREAT VALUE FOR OUR PRODUCTS
THAT THAT'S OUR FIRST STEP, THE
REALITY IS THE INDUSTRY HASN'T
HAD INFLATION FOR THE LAST FIVE
YEARS, IT'S BEEN RELATIVELY
MARKET, I THINK IT'S GOOD FOR US
AND GOOD FOR CUSTOMERS AND THE
HEALTHY ECONOMY AND HEALTHY
YOU WERE TO SEE HIGHER
RETALIATORY TARIFFS ONCE YOU
SELL OUT TO EUROPE, I KNOW IT'S
PRODUCED IN THE U.S. AND LARGELY
FOR U.S. CONSUMPTION BUT IF YOU
WERE TO SEE TARIFFS, DOES THAT
PUSH YOU FURTHER TO RAISE
PRICES, WOULD THAT POIS YOU TO
THAT OPEN TRADE IS THE RIGHT
ANSWER AND I THINK THAT'S THE
BEST LONG-TERM HOPE THAT WE CAN
GET OPEN TRADE.
MARIA: TELL US ABOUT JOBS,
BRINGING JOBS BACK TO AMERICA,
YESTERDAY YOU CELEBRATED THE
GRAND OPENING OF NEW U.S.
HEADQUARTERS IN VIRGINIA, PRETTY
SIGNIFICANT MILESTONE IN
152-YEAR HISTORY OF THE COMPANY
BUT EVEN AS ESTABLISHED NESTLE
IS YOU CONTINUE TO DEMAND TO
FUTURE DEMANDS THROUGH
INNOVATION, TELL US ABOUT THE
NEW PLANT?
>> YEAH, ABSOLUTELY, I THINK
MORE THAN JUST ANNOUNCING AN
OPEN K OF NEW HEADQUARTERS IN
VIRGINIA IT'S ABOUT, YOU KNOW,
RELOCATIONS ARE A GREAT CATALYST
THAT WE CAN INJECT INTO THE
BUSINESS TO TRANSFORM IT IN A
HUGE WAY AND IT'S BEEN A GREAT
LEVER FOR US MOVING ACROSS
COUNTRY, RESETTING THE
EXPECTATION, RESETTING THE
CULTURE AND DRIVING THIS CULTURE
OF INNOVATION IN THE MARKET AND
A GREAT PARTNERSHIP WITH THE
STATE OF VIRGINIA AND THE LOCAL
DEVELOPMENT HERE AND WE ARE
LOOKING FORWARD TO WHAT BEING ON
THE EAST COAST WILL BRING FOR
US, THE REALITY 80% OF THE
CONSUMERS, 80% OF THE CUSTOMERS
AND CUSTOMERS WHICH MAKESES US
BETTER FOR THE FEW CURE.
>> ARE THERE NEW JOBS AS A
RESULT OF THE NEW PLANT?
>> ABSOLUTELY, WE CONTINUE TO
GROW IN THE U.S. AND SO WE WILL
HAVE ALMOST 2,000 EMPLOYEES IN
THE STATE OF VIRGINIA BETWEEN
OUR CORPORATE HEADQUARTERS AND
TWO FACTORIES AND SO THEY'LL BE
NEW JOBS ABSOLUTELY AS WE
CONTINUE TO LOOK TO GROW OUR
BUSINESS IN THE U.S.
MARIA: ALL RIGHT, WE WILL LEAVE