Nestle SA Reg Shs. Ser. B Spons (ADR) (OTCMKTS:NSRGY) investors took another day to consider their short term options as the stock finished the last trading session with a minor loss of 0.51%. Naturally, the volume of the day at 240,000 was much lower than the daily average of 398,000. The daily candle took the form of a Turning Top, which implies indecision just like the Doji pattern. The stock is finding extreme short term support around $76 but the major support may be expected from the channel projection line, as shown on the chart attached.
Nestle SA Reg Shs. Ser. B Spons (ADR)(OTCMKTS:NSRGY) intends to resume Maggi noodles sales in India next month. The company has been dealing with a public relation crisis in India, a rapidly growing consumer products market, after a countrywide restriction on its instant noodles back in May. The ban was forced after local regulators confirmed in May 2015 that some packets of Maggi noodles had unsafe levels of lead. The company, which has stated the Maggi noodle are safe, was forced to recall its products a month later, costing it nearly 66 million Swiss francs.
Nestle has once again commenced manufacturing Maggi instant noodles and will forward samples from these batches for testing process. The company would restart Maggi sales after the submitted samples will be approved in the tests. A spokesman of Nestle said that sales resumption is expected to begin in November. Nestle officials declined earlier in October to speculate the timing of sales resumption.
Gerber baby food
The one product that would be mentioned in this article is Gerber Baby food. Most of the people have seen Gerber baby food commercials or may remember the Gerber baby face walking down the aisles in a store. Once a U.S. firm, Gerber is now owned by Nestle. Although the company retains some factories in the U.S. for its infant formulas, a major part of Gerber baby food products are produced outside the United States.
Although the firm is not as accommodating as Levi Strauss with its plants list, Nestle lists Mexico, Poland and Venezuela as affiliated country sites that customers can view on its corporate page, suggesting that these are probably some of the manufacturing places outside the U.S. Gerber doesn’t seem to be distressing from its ex-U.S. production. The company claims that its baby food market share in the U.S. was 71% at the end of 2013.