The leader doesn't leave—Nestle's Egypt story

Cairo is a city of contrasts, where gleaming skyscrapers stand alongside ancient structures. The Nile flows like a silver ribbon beneath the vast Egyptian sky. The air is filled with the aroma of spices and freshly baked bread, and the songs of Umm Kulthum, also known as the ‘Kawkab-el-Sharq’ or the ‘Star of the East’, plays on from cafés, radios, and taxis.

 

I arrived in Cairo in October 2010 as the chairman and CEO of Nestlé for North-East Africa, with additional responsibility for Libya and Sudan. My boss Frits Van Dijk described this posting as a peaceful interlude, a “retirement posting” in a region perceived as stable. However, the veneer of tranquility was soon to shatter, revealing the complex realities of a nation on the cusp of profound change.

 

As a country, Egypt has a pivotal geopolitical and economic role to play in the Arab world. Nestlé has a long presence in Egypt dating back over a century when its nutrition product was sold for the first time in Alexandria. It wasn’t until 1988 that Nestlé began manufacturing near Cairo and invested significantly in building an integrated manufacturing and distribution service managed and operated by its own staff.

 

Just a week before the January 25 revolution began at Tahrir Square, Nestlé Egypt announced a $160 million programme to enhance manufacturing and distribution, while also focusing on employee skill development—that would be implemented over three to five years. Many companies faced strikes, lockouts and disruptions that were common during that time and were tempted to hold back on investments until the situation settled or even to look for alternative locations from which to serve the region. This timing presented a critical juncture, forcing Nestlé to confront a stark choice: retreat in the face of escalating instability, or remain steadfast in its commitment to the Egyptian market and its people.

 

I spoke with my boss and said my team and I would stay, while our families would return home. After nearly two weeks, Hosni Mubarak had resigned as the president of Egypt and the entire city was under curfew. We decided to visit our two factories in the industrial district. About 15 per cent of the workforce at the ice cream factories were women. I was with my technical director, a Swiss Italian, and we were guessing how many workers would turn up. Despite the tough external environment we had almost complete attendance at the first ice cream factory and about 80-90 per cent attendance at the second factory. I addressed the workers, thanking them for turning up. One of them stood up and said, “You never left.” That was an important factor for them—that the leader doesn’t leave. It also highlights the importance of leadership presence in times of crisis. This act of solidarity fosters a sense of trust and mutual respect, solidifying the bond between the company and its employees.

 

Roger Stettler was my inspiration for the true values of a Nestlé person—respectful, unfazed in any storm and someone who stood by me in times of volatility and crisis during the Arab Spring.

 

The period from 2010 to 2014 was marked by significant social, economic, and political challenges, a direct consequence of the Arab Spring. Yet, against all odds, Nestlé witnessed substantial growth in Egypt. This story stands as a testament to the resilience, commitment, and extraordinary talent of the Egyptian workforce, who consistently rose to meet the formidable challenges presented by the volatile environment and speaks of the enduring power of human connections.

 

Narayanan is chairman & managing director, Nestle India

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