Nestlé's Darkest Secret: The Disturbing Truth

MagnatesMedia
20 Sept 202222:34

Summary

TLDRThis video delves into the controversial history of Nestlé, the world's largest food and beverage corporation. From its inception by pharmacist Henry Nestlé to create a life-saving baby formula, the company has been mired in scandals. Accused of aggressive marketing leading to infant malnutrition, exploiting water resources, and being complicit in child labor for cocoa production, Nestlé's practices have raised ethical concerns. Despite facing international boycotts and legal actions, the corporation continues to expand its global reach, making it challenging for consumers to avoid its extensive range of products.

Takeaways

  • 🌍 Nestle is the world's largest food and beverage corporation, owning over 2,000 brands and being involved in numerous controversies.
  • 👶 The company was founded by Henri Nestle, who created one of the first baby formulas to save the lives of infants who couldn't be breastfed.
  • 📈 Nestle's aggressive marketing of baby formula in the 1970s led to health risks for babies, especially in developing countries with poor access to clean water.
  • 💧 Nestle has been criticized for its water extraction practices, including bottling and selling water back to communities from which it was sourced at a profit.
  • 🍫 The company has faced allegations of using child labor and forced labor in the production of its chocolate, a problem it acknowledged but struggled to fully address.
  • 💸 In 2002, Nestle demanded compensation from the Ethiopian government for assets nationalized decades earlier, an action that drew criticism during a famine.
  • 🛒 Nestle's vast brand portfolio makes it difficult for consumers to avoid, even with boycotts, due to the ubiquity of its products across various categories.
  • 🌳 The company has been involved in environmental issues, including deforestation and pollution, related to its operations and supply chain.
  • 📉 Despite numerous scandals, Nestle continues to grow, highlighting the complexity of holding large corporations accountable for ethical practices.
  • 🏛️ The script suggests that while Nestle may have started with noble intentions, its business practices have evolved in ways that have created new problems and controversies.

Q & A

  • What is the main issue discussed in the script regarding Nestle's operations in poor countries?

    -The script discusses Nestle's involvement in child labor and the unethical acquisition of water resources in poor countries, particularly in Asia and Africa.

  • How does the script describe Nestle's water collection practices in Southern California?

    -The script accuses Nestle of collecting millions of gallons of water from springs in Southern California, implying that this practice is exploitative and potentially harmful to local resources.

  • What are some of the accusations against Nestle regarding their baby formula marketing?

    -Nestle is accused of aggressively marketing baby formula in a way that undermines breastfeeding, using tactics such as paying doctors and hospitals to recommend their formula, and employing saleswomen to pose as nurses in order to sell their product.

  • How did Nestle's aggressive marketing of baby formula impact infants in developing countries?

    -The aggressive marketing led to many infants being fed formula mixed with contaminated water, resulting in illness, malnutrition, and an estimated millions of deaths.

  • What was the outcome of the 1974 publication that accused Nestle of creating a need for baby formula where it didn't previously exist?

    -The publication led to an international scandal, boycotts against Nestle, and eventually new regulations by the World Health Organization to prevent companies from comparing breast milk with formula milk alternatives in their advertising.

  • How does the script characterize Nestle's approach to water resources in various countries?

    -The script characterizes Nestle's approach as exploitative, accusing the company of depleting water resources, bottling the water, and selling it back to the same communities at a higher price.

  • What controversy is Nestle involved in regarding their chocolate production?

    -Nestle has been accused of using forced labor and child slavery on the farms where cocoa beans are harvested for their chocolate products.

  • How did Nestle respond to allegations of child labor in their supply chain?

    -Nestle has generally denied direct knowledge of child labor and has vowed to improve the situation, but the script suggests that their actions have been insufficient and primarily reactive to negative press.

  • What was the controversy surrounding Nestle's demand for compensation from the Ethiopian government?

    -Nestle demanded compensation for assets seized by a previous government in Ethiopia, even though the country was facing extreme famine and poverty, which led to public outcry and potential boycotts.

  • How does the script suggest Nestle's business model has changed over time?

    -The script suggests that while Nestle began with the intention of solving a genuine problem, their business model has evolved to create problems in order to sell solutions, leading to various scandals and controversies.

Outlines

00:00

🌍 Nestle's Global Controversies and Origins

The video script begins by highlighting the issue of child labor in poor countries and accuses Nestle, the world's largest food company, of unethical practices. It points out Nestle's extensive water extraction in Southern California and criticizes its operations in regions with impure water and child labor. The script then delves into Nestle's history, starting with its founder, Henry Nestle, and his creation of one of the first baby formulas in 1867. It outlines Nestle's growth into a global conglomerate with over 2,000 brands, and hints at the dark controversies that have surrounded the company, including accusations of child slavery, exploitation, and the denial of water as a human right.

05:01

📈 Nestle's Expansion and Aggressive Marketing Tactics

Paragraph 2 discusses Nestle's rapid expansion after its founding, including its merger with Anglo Suess to form the Nestle Group. It details the company's diversification into various food and beverage products, with a particular focus on baby formula. The script accuses Nestle of aggressive marketing strategies in the 1970s, promoting its baby formula as superior to breast milk, which led to health risks for infants, especially in developing countries with poor access to clean water. It describes how Nestle's sales tactics involved paying off medical professionals and using deceptive methods to convince mothers to use formula over breastfeeding, resulting in a significant scandal and international boycotts.

10:03

💧 Nestle's Water Controversies and Exploitative Practices

Paragraph 3 focuses on Nestle's water operations, accusing the company of exploiting water resources for profit. It provides examples of Nestle's activities in Pakistan, California, and Michigan, where the company has been criticized for extracting water and selling it back to communities at high prices, sometimes during periods of drought or water scarcity. The script also mentions Nestle's CEO's controversial statement about water not being a human right and the company's practice of bottling and selling water at a significant markup, even when it originates from common municipal supplies.

15:04

🍫 Nestle's Involvement in Child Labor and Slavery in the Chocolate Industry

Paragraph 4 delves into allegations of child labor and slavery in Nestle's cocoa supply chain. It discusses how Nestle, along with other chocolate companies, has been accused of buying cocoa beans produced by enslaved children. Despite promises to eradicate slave labor from their supply chain, the script suggests that little has changed, with reports of children as young as eight working in harsh conditions on plantations. The paragraph also touches on Nestle's legal disputes and their demand for compensation from the Ethiopian government during a period of famine, highlighting the company's prioritization of financial gain over ethical considerations.

20:05

🛒 Nestle's Ongoing Controversies and the Challenge of Boycotting

The final paragraph addresses Nestle's continued controversies, including price-fixing allegations and the impact of their business practices on the health of pets due to issues with their pet food products. It also reflects on the difficulty of boycotting Nestle due to the company's vast range of products and global reach. The script concludes by acknowledging the complexity of the issues and the inevitability of scandals for a company of Nestle's size and age, while also suggesting that the company's growth has led to a shift from solving problems to creating them for profit.

Mindmap

Keywords

💡Child labor

Child labor refers to the employment of children in work that is inappropriate for their age. In the context of the video, it is mentioned that Nestle has been accused of using child slave labor in parts of Africa for their cocoa bean farms, which is a significant ethical concern. The video highlights this as part of a broader discussion on the company's practices and their impact on vulnerable populations.

💡Nestle

Nestle is the world's largest food and beverage company, known for its diverse range of products from chocolate to baby food. The video script focuses on Nestle as a case study for corporate practices that have been criticized for their social and environmental impacts, such as child labor, water rights issues, and aggressive marketing tactics.

💡Infant mortality

Infant mortality is the death of infants before they reach one year of age. The video discusses how high infant mortality rates due to lack of breastfeeding or allergies to milk led to the creation of Nestle's first product, an artificial baby formula. This innovation, while initially intended to save lives, later became the center of controversy due to Nestle's marketing practices.

💡Aggressive marketing

Aggressive marketing is the practice of promoting products or services in an assertive and sometimes misleading manner. The video script describes how Nestle allegedly used aggressive marketing tactics to promote their baby formula, undermining breastfeeding and leading to health issues and even deaths among infants in developing countries due to improper use and lack of clean water.

💡Water rights

Water rights refer to the legal rights or claims to use water from a particular source. The video discusses Nestle's practices related to water rights, particularly their抽取 and bottling of water in areas where clean water is scarce, leading to accusations of depriving local communities of a basic necessity and contributing to environmental degradation.

💡Blood chocolate

Blood chocolate, also known as slave chocolate, is chocolate that has been produced using child or forced labor. The video mentions that Nestle was accused of buying cocoa beans, which are used to make chocolate, from plantations that employed enslaved children, highlighting the dark side of the chocolate industry and the ethical dilemmas faced by consumers.

💡Breastfeeding

Breastfeeding is the process of feeding an infant with milk produced by the mother's body. The video emphasizes the importance of breastfeeding and how Nestle's marketing of baby formula in the 1970s was accused of undermining this natural and healthiest method of infant feeding, leading to health risks for babies in regions with poor access to clean water.

💡Environmental degradation

Environmental degradation refers to the deterioration of the natural environment through processes such as pollution and depletion of resources. The video script implicates Nestle in environmental degradation by discussing their water extraction practices, which have allegedly led to reduced water levels and ecological harm in various locations around the world.

💡Price fixing

Price fixing is an illegal practice where companies collude to set prices for goods or services, often to the detriment of consumers. The video mentions an investigation and subsequent settlement by Nestle related to allegations of price fixing in the chocolate industry, indicating potential unethical business practices.

💡Corporate social responsibility (CSR)

Corporate social responsibility is a self-regulatory mechanism by which a company can contribute to social, environmental, and economic development while also addressing legal, ethical, and societal expectations. The video script critiques Nestle's approach to CSR, suggesting that despite the company's size and influence, their actions have often fallen short of ethical standards, leading to controversies and negative public perception.

Highlights

One in four children in the world's poorest countries are engaged in child labor.

Nestle, the world's largest food company, has been accused of unethical practices including child labor and water exploitation.

Nestle collects millions of gallons of water annually from springs in Southern California.

The company has been criticized for its operations in areas with impure water and using indentured servants.

Nestle's controversial history includes accusations of child slavery and exploitation in Asia and Africa.

The company has been involved in water theft controversies from Brazil to Flint, Michigan.

Nestle owns over 2,000 brands, making it difficult for consumers to avoid their products.

Nestle's aggressive marketing of baby formula in the 1970s led to health issues and deaths among infants.

Nestle has a history of undermining breast milk and promoting its formula as superior.

The company has been accused of using 'fake nurses' to promote its formula in maternity wards and homes.

Nestle's marketing tactics have led to malnutrition and health issues among babies in developing countries.

The company has faced legal actions and boycotts due to its unethical business practices.

Nestle has been involved in water rights controversies, including diverting water from communities and bottling it for profit.

Nestle has been criticized for its role in child labor within its cocoa bean supply chain.

The company has faced allegations of price-fixing with other chocolate manufacturers.

Despite controversies, Nestle continues to grow and acquire more brands, making it challenging for consumers to boycott.

Transcripts

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in the world's poorest countries around

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one in four children are engaged in

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child labor the world's biggest food

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company Nestle the Nestle company Nestle

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Nestle collects millions of gallons a

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year from Springs in Southern California

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would you agree with me that your

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product should not be used where there

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is impure water

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they are taking the water that should

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not be owned by anybody using indentured

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servants and parts of Asia because of

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using child slave labor in parts of

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Africa they've been trying to steal

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water everywhere from Brazil to Flint

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Michigan when it comes to corporations

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operating without any regard to human

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health and safety the Nestle Corporation

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really seems to be in a league all of

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its own what's going on with this

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company

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Nestle is the largest food and beverage

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Corporation in the entire world they own

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over 2 000 different brands and sell

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chocolate cereal coffee baby food water

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ice cream and so much more in fact it

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would be difficult to go shopping and

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not buy something that's owned by Nestle

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and yet the company is accused of some

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truly horrific things including child

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slavery killing babies exploiting Nepal

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claiming water shouldn't be a human

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right and countless other scandals so

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what's the truth and if Nestle really is

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this evil how are they getting away with

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it this video is a journey into the Dark

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World of nestle a look behind the

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curtain at one of the most controversial

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companies ever but to understand the

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story of nestle we first need to go back

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to the man who started it all

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foreign

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[Music]

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[Music]

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begins with the birth of a boy in

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Frankfurt in 1814 Henry Nestle was the

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11th of 14 children and was born into a

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family of glaciers where the trade of

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cutting and fitting glass had been

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passed down from father to son for many

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generations however as Henry got older

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he became fascinated with chemistry and

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decided he wanted to become a pharmacist

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instead of going into the Family Trade

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which caused a bit of a rift between him

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and his dads but Henry was determined to

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follow his own path and at 15 he began

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working as a pharmacist Apprentice

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before later leaving his hometown in

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Germany to go and live in Switzerland

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where he worked on concocting medicines

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and chemical experiments it was here in

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Switzerland that Henry would start one

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of the biggest corporations in the world

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in fact to this day Vive in Switzerland

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Remains the headquarters of nestle but

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it wasn't until much later in his life

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that Henry started Nestle before his big

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break Henry tried all kinds of different

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entrepreneurial ideas like he started

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producing and selling liqueur vinegars

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rum lemonade and even fertilizers but

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none of his business ideas ever seem to

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take off it wasn't until Henry was in

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his 50s that he finally had his big

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breakthrough it all began when Henry

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read a report that infant mortality had

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become extremely high because many women

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couldn't breastfeed their children or

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their children were allergic to the milk

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Henry realized this massive problem was

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also a big opportunity there was clearly

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a major need for an artificial

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alternative to breastfeeding but could

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save countless babies lives and thus

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Henry began to study all the existing

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information about breast milk and

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conduct a series of experiments in his

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lab with various different ingredients

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but saving children's lives wasn't the

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only thing that pushed Henry day and

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night to find a breast milk substitutes

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his own tragedy also played a part as

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Henry's wife had had many health issues

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of her own unless it was unable to give

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birth so as a way to channel her

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maternal instincts she became extremely

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concerned about other people's babies

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and pushed Henry to create a breast milk

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substitute that could save lives and by

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1867 he'd succeeded Henry had created

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one of the first ever baby formulas

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essentially a formulated mixture of

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cow's milk flour and sugar which could

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be a substitute to natural breast milk

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Henry then created a company called

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Nestle to begin selling it and so you

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see Nestle began with such great

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intentions a humble guy creating a

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life-saving product for babies who

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couldn't breastfeed naturally

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unfortunately this isn't a heartwarming

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success story if anything this is a

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horror movie you see ola's baby food was

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the product that started Nestle's

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dominance it was also the product that

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would later destroy lives and create an

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international Scandal and as Nestle grew

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into a giant conglomerate they became

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shrouded in all kinds of dark

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controversies but we'll get to that

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at first Henry's new baby formula was a

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big success orders were coming in so

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quickly that Henry had to open up a

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factory to keep up with the demand he

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couldn't believe it everything was

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happening so fast and money was pouring

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in with the huge success of this first

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product Henry then partnered with a

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Swiss chocolatier to create another new

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product and in 1875 Baker did the first

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chocolate milk in the space of just a

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couple of years Henry went from being a

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small unknown pharmacist in Switzerland

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to one of the richest men in the country

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and Nestle was growing more and more

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every month but in a way it was all a

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bit too much for Henry who was entering

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the final stages of his life and wanted

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to relax and spend more time with his

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wife and so a few years later Henry

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decided to retire and sell his company

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and this is where things get really

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interesting you see the new owners who

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took over Nestle had big plans to expand

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the company and in 1905 they merged with

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a rival business who sold similar

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products called Anglo Suess and together

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they became known as the Nestle Group by

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pooling all their resources together

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instead of competing it allowed them to

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more easily dominate the market and

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expand their product Lines by the 1920s

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Nestle was creating new chocolates and

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different Beverages and by 1938 they

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created the first mass-market coffee

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their timing was great as instant coffee

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helped keep soldiers awake during the

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second world war and thus it became

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included in all emergency rations of

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every U.S soldier as well as creating

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new products the Nestle group quite

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often just acquired other companies they

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saw potential in or that they thought

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could be serious competition and so as

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the years went by Nestle's list of

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products grew and grew and so did their

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wealth and power unfortunately that

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wasn't enough for them and a behind the

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scenes a plan was being hatched a plan

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that would make millions of dollars at

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risk of millions of lives

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thank you

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[Music]

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when Henry Nestle first created his baby

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formula back in 1867 the whole idea was

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a supplement to help mothers who

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couldn't breastfeed their children

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certainly not to try and replace breast

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milk altogether and the reason for that

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is Studies have shown that natural

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breast milk is healthier than any

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formula natural breast milk is widely

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recommended by the World Health

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Organization American Medical

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Association UNICEF and countless others

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so for a while baby formula was sold

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simply as an alternative for those who

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needed it but in the 1970s roughly a

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hundred years after the company first

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began sales seemed to be slowing down

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and Nestle started to get greedy they

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wondered why if we could sell this baby

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formula to all mothers not just those

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who actually need air you see despite

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all the other products Nestle had

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launched baby formula was still one of

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Nestle's biggest money makers and that's

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because it has very high profit margins

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so imagine how much more money they

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could make if they could expand their

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Market to all mothers so neste began a

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campaign to undermine breast milk and

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aggressively advertise their baby

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formula as being Superior manipulating

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mothers into believing Nestle's formula

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was a necessity for the health of their

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babies and that it would be better for

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their child than breastfeeding when in

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reality the evidence was the opposite

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Nestle's formula was vastly inferior to

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Natural milk as it lacked many of the

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nutrients that helped babies fight off

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disease and keep them healthy by

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encouraging mothers to switch when they

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didn't need to it was putting their

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babies at a higher risk of infection and

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malnutrition in order to make sure

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mothers believe this information though

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Nestle began paying off doctors and

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hospitals to Peddle their formula by

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asking them to tell mothers it was

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better than breastfeeding Nestle then

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ramped this up further in Africa and

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Asia where they would hire sales women

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to dress up like nurses and convince

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mothers to give up breastfeeding and use

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their formula instead these sales women

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were paid on commission meaning the more

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formula they sold the more money they

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made thus encouraging them to sell the

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formula very aggressively which they did

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these sales women posing as genuine

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nurses Would Walk The Halls of maternity

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Wards or even visit mothers at their

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homes unannounced and sell them on

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Nestle's baby formula and it gets much

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worse Nestle got these fake nurses to

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hand out free samples of their formula

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to mothers except they gave them just

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enough samples that by the time the

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samples ran out the mothers would have

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stopped producing milk naturally and

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this had no choice but to pay for

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neste's expensive product to keep their

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child alive this proved to be very

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successful and profitable for Nestle and

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so they expanded this plan to many other

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locations but especially developing

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nations where many of the women weren't

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educated enough to know the information

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they were being fed wasn't true after

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all if a woman who appears to be a

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qualified nurse is telling you that your

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baby needs this product you're just

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gonna believe them of course the

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consequences were fatal it's estimated

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millions of babies died or were made

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severely deficient in essential

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nutrients because of this the worst

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impact was in third world countries

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where there was no access to clean water

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the big problem was that the baby

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formula had to be mixed with water and

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yet Nestle was convincing people they

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needed to use this baby formula in

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places where clean water was in very

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short supply so the formula was getting

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mixed with water that was polluted and

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contaminated that's making the babies

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ill to make matters even worse because

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many of these women couldn't afford to

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keep buying the baby formula that their

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babies now depended on they instead

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diluted it with even more water which

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meant that the babies didn't get enough

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of the nutrients they needed from the

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formula leading to malnutrition it

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didn't help that the instructions on the

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packaging were in English which most of

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the mothers in these countries couldn't

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read so they didn't even realize that by

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diluting it so much they were starving

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their children this also meant many of

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them didn't know they needed to boil the

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water first to prevent bacteria making

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their baby sick for a while Nestle did

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nothing about any of this and seemed to

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be getting away with it all but then in

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1974 a publication entitled the baby

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killer specifically called out the

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serious consequences of aggressively

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pushing baby formula in these countries

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Nestle was listed for its involvement in

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creating a need that didn't exist before

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4 then convincing consumers the product

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was necessary and then getting them

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hooked on it all was completely ignoring

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the tragic consequences when this was

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translated into German by Swiss

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campaigners it was given the very blunt

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title Nestle kills babies which led to

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Nestle taking legal action against them

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but it was all too late all this

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coverage created an international

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Scandal for Nestle and boycotts were

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launched against them in numerous

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countries despite this the company

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remained quiet on the issue however they

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couldn't run from this in 1978 Nestle

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Executives were brought before the U.S

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Senate for questioning about the impact

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of neste's formula milk on all of these

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sick or dying infants and soon after new

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regulations were introduced by the World

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Health Organization that said companies

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couldn't compare breast milk with

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formula milk Alternatives in their ads

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whilst this helped him well-regulated

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countries in much of Southeast Asia and

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the Pacific the regulations and laws

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were not so well enforced meaning Nestle

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doubled down on their marketing and many

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of these underdeveloped countries with

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less restrictions unless their cells

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continue to increase meanwhile back in

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places like the US where sales had

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stalled unless they tried to change

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their tarnished image and promote breast

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milk by using some very bizarre ads

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featuring something called the super

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babies

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the idea was to try and distance

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themselves from the negative media

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attention they'd received by making out

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like they'd totally changed despite the

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fact they were still using the same

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exploitative tactics to push their

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formula in countries where they could

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still get away with it if even as

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recently as 2018 a report by save the

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children found the health of millions of

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vulnerable children were being put at

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risk because of the aggressive marketing

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tactics used by Nestle and several other

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giant corporations and yet despite all

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of the extremely serious problems that

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tactics have caused I'm sorry to say

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that when it comes to Nestle's dark

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pasts we're only just getting started

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[Music]

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foreign

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five the neste CEO implied that having

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access to water wasn't a basic human

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rights this was uh

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the zest has many certainty and foreign

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after the media criticized him for this

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he later backtracked but to see how he

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really feels we can simply look at

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Nestle's actions when it comes to water

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for example in Pakistan in 2013 Nestle

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began diverting clean drinking water

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away from Villages and towns and then

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began bottling air in their factories

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and selling it back to the same people

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they took the water from but at a much

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much higher price the big issue is that

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Nestle had taken so much water that

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thousands were forced to drink dirty

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sludge water instead because these

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people couldn't afford to buy the

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expensive bottled water which remember

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was theirs to begin with Nestle's

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strategy was essentially to deprive

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people of a necessity like clean water

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and then Supply them an expensive

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alternative since Nestle arrived in the

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country there are claims they have

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sucked the land dry and caused water

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levels to sink hundreds of feeds and

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it's not just in developing countries

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where neste does this for example in

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America when California was suffering

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from droughts many companies moved their

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operations out of the state but but not

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Nestle in the midst of this very serious

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water shortage Nestle Waters continued

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to pump 705 million gallons of fresh

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water from California's national parks

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draining some of the state's remaining

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Water Resources to sell back to

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Californians and when asked about this

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the Nestle Water CEO said that if he

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could bottle more of California's water

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for profit during the drought he would

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likewise in Michigan it was reported

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Nest a pumped 747 liters of fresh water

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every minute out of the state reserves

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and that neste pays only 200 to take 130

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million gallons of Michigan's water

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after Nestle caused a drastic reduction

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in the state's water levels a judge

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eventually ordered neste to stop its

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operations due to the ecological harm

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they were causing whilst it's perhaps

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not widely known the reality is Nestle

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has the largest bottle water operation

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in the world and owned over 50 brands of

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bottled water so Nestle are actually

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incentivized to Target places with

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limited clean water available from their

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own natural resources because if they

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buy up lots of the natural water

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supplies and create a shortage a great

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is massive demands if you've seen Mad

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Max Fury Road you may remember the guy

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who was holding all the water and that's

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not truly similar from neste's approach

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but perhaps when Nestle got a lot of

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their inspiration was the classic

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British show Only Fools and Horses in

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one episode the characters decide to

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sell bottled water by claiming it came

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from a natural spring when really it

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just came straight out of the tap now

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this show was a comedy but Nestle

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decided to basically do that in real

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life Nestle has simply bottled up water

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that comes from the exact same Municipal

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supplies as tap water and advertised

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there as coming from Clear Mountain

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Springs thus allowing them to add a huge

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markup to the price when in fact they

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can buy a tank of this water for ten

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dollars use it to fill thousands of

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plastic bottles and resell this

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glorified tap water for an estimated

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fifty thousand dollars

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before we get to the next chapter can we

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all just agree that traditional

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education is broken memorizing a

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textbook for an exam or listening to

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someone lecture you for hours is not the

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most effective way to learn and it's not

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enjoyable either which is why I want to

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[Music]

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when you pick up a chocolate bar

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probably the last thing on your mind is

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how that chocolate bar was made but the

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brutal truth is that Nestle has been

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found to use forced labor and even child

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slavery on the farms where the cocoa

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beans are harvested and for a while this

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cheap exploitative labor went mostly

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unnoticed leading to low costs and high

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profits but then in the year 2000 a

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report came out that said Nestle was

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guilty of buying blood chocolates and

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unless they was fully aware that

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enslaved children were working on their

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plantations now this was also true for

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many of the big chocolate companies so

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in the year 2000 Nestle Cadbury and Mars

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all promised to make their chocolate

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slavery by 2005 except they didn't the

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years flew by and they kept missing all

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the deadlines they set in fact in 2005

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the international labor rights fund

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filed a lawsuit against Nestle and other

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chocolate manufacturing companies on

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behalf of three Malian children alleging

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the children were trafficked to the

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Ivory Coast forced into slavery and

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frequently beat eaten on the chocolate

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Plantation neste's response to incidents

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like this was always the same they said

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it was impossible to keep track of

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everything going on on these plantations

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but they vowed to try and improve their

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situation but then a few more years

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passed and it seemed like nothing had

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really changed in 2010 a documentary

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called The Dark Side of chocolate

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brought attention to the media about how

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children were being stolen away from

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their homes and families are being

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forced to work on plantations for very

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little or no money at all then an

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investigation in 2020 discovered that

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children as young as eight were picking

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coffee on the farms of one of Nestle's

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suppliers it was reported children work

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seven days a week carrying sacks that

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weighed twice their weight and got paid

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around one dollar an hour for their work

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however once again at nestled denied

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knowledge of this and said they tried to

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fix it and to be fair here this is a

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complex issue that's certainly not

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limited just to Nestle but what does

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seem clear is Nestle have known about

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these labor problems for decades and

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with their billions of dollars they

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could surely have done a lot more if

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they really wanted to the only time they

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seem to show signs of action against

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these brutal working conditions was when

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they were getting negative press and

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there's another example of this with

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what happened in Ethiopia in 2002 neste

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was demanding six million dollars from

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the government of Ethiopia one of the

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poorest countries on the planet the

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conflict dated back to the 1970s when a

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military regime in Ethiopia seized all

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the assets of foreign companies and

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nationalized them and then many years

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after this one of those companies that

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had its asset seized was acquired by

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Nestle who were now demanding

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compensation now remember this was a

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business that was nationalized under a

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different government 27 years ago and a

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business which Nestle didn't even own at

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the time but still to be fair to Nestle

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here technically they were entitled to

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claim compensation but here's the issue

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at the time they were making this demand

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for six million dollars Ethiopia was

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facing an extreme famine that threatened

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the lives of 15 million people the

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country was in extreme poverty with many

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citizens making less than a hundred

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dollars a year that six million dollars

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could help provide clean water to

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millions of Ethiopians it could quite

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literally say save lives but despite

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being aware of this and despite the fact

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Nest they made around 65 billion dollars

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in sales that same year Nestle initially

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refused to let Ethiopia off the hook and

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persistently demanded the money even

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though six million dollars was nothing

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to Nestle they said it was the principle

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of the matter that was important however

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once the media picked the story up and

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people started threatening to boycott

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their sleigh they immediately did a

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u-turn and settled the debt for 1.5

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million dollars instead and vowed to

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reinvest it into the country's economy

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but it seems pretty clear if it wasn't

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for the potential PR nightmare they had

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no intention of backing down and if you

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thought Nestle's controversies ended

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there think again in 2012 the

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competition Bureau raided the offices of

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nestle to investigate price fixing

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claiming Nestle was making deals with

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other chocolate companies to ensure they

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all kept their prices equally high so

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they didn't undercut each other and give

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customers a better deal neste denied any

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collusion but eventually settled for a 9

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million settlement the following year

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ordinarily this might be quite a big

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controversy but in the context of

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everything else they've been accused

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stuff it doesn't even seem that bad

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comparatively and to be honest we could

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go on for a while listing allegations

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against the company like the legal

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dispute that claimed dog food produced

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by Nestle Purina pet care resulted in

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serious illness and death of thousands

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of dogs or we could talk about Nestle's

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terrible pollution stats but here's the

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thing because of all these scandals

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Nestle have been involved in many people

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have tried to boycott Nestle products

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but the company is so vast that it's

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incredibly difficult because there's

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just so many different products they

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sell they have reached in almost every

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country with products in so many

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different categories when you buy food

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water or even cosmetics without

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realizing it you may be buying from a

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Nestle brand which is probably why

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despite all of these controversies their

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Slayers continued to grow and make more

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Acquisitions to become even more

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powerful and to be fair I'm sure there

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are many people working at Nestle who

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just want to make good products in a

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perfectly ethical way the issue is that

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when Henry Nestle founded the company he

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was solving a very genuine problem but

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unfortunate as an essay grew their

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business model later started creating

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problems instead so they could sell you

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the solution of course when you've been

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around for hundreds of years and owned

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so many Brands I guess some scandals are

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kind of inevitable just ask Coca-Cola to

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see the disturbing history of coke just

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click right here I'll hopefully see you

play22:27

there cheers

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[Music]

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Related Tags
Nestle ControversiesChild LaborWater RightsCorporate EthicsGlobalization ImpactConsumer AwarenessSustainability IssuesCocoa IndustryHealth ImpactEconomic Exploitation