able the company to withstand this and later shakeups in the market.
After the war Nestle continued its global expansion, entering new product categories through acquisition and internal product development (the company developed instant coffee prior to World War II, but was never successful in enforcing patent claims). Other important product introductions were its Crunch bar (1938), Quik drink mix (1948), and Taster's Choice coffee (1966). Most of the company's expansion came during the 1970s and 1980s with the acquisitions of Beringer Brothers wines, Stouffer, Libby, McNeill & Libby canned foods, Carnation, Hills Brothers and MJB coffees, Buitoni pastas, Rowntree candy, and Butterfinger and Baby Ruth candies. In 1992, Nestle launched a hostile bid for Source Perrier. After much negotiation the purchase was completed, but European Community (EC) regulators forced Nestle to sell off some of Perrier's other water brands. In 1993 and 1994 Nestle prospered despite Europe's recession by streamlining operations, cutting unprofitable products, increasing sales in new markets, and aggressive marketing. In 1994 it acquired Alpo pet food from Grand Metropolitan.
Beginning in the early 1990s, Nestle returned to a commitment of maintaining its core products and divesting itself of those subsidiaries which were not central to this mission. This resulted in the sale of Stouffer's hotels, and the company rededicated itself to the packaged foods, confectionery and beverage business (Gillette, 1993, p. 1). The company maintains nearly the same product lines and brands throughout the world, with little differentiation from one country to the next. This enables the company to take advantage of economies of scale in the production process, and also encourages consumers familiar with Nestle brands in one location to make a purchase decision in their favor in other locations.
Nestle has not been content to let its product lines stagnate. ...