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The reporter sat there thinking something along the lines of: "Wait a second, Nestle has been a profitable business for 154 years. Something is terribly wrong when the premier business school in the U.S. doesn't even note that as a significant positive for the company."


My family, near and far, arrived in Venezuela in the first half of the 20th century and they set up a couple of well run businesses. The heirs didn't show any interest in continuing in the businesses and the chocolate factory was sold to Nestle while the food industry was sold to Pepsi.

The chocolate factory is still going strong. The food factory went bankrupt. I had occasion to visit the food factory after it had been sold to Pepsi and the production manager lamented: "With your uncle I used to produce marmalade. Now I produce reports."

Pepsi went about reviewing the ingredients of all the products in order to increase their profitability but killed the taste and quality that were the attractions for the customer. My uncle would wander about the factory tasting this and that and he proved to be irreplaceable by business school graduates.

BTW, at the time, Pepsico International was under the leadership of John Scully who went on to fail at Apple Computer.

Denny Schlesinger
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