Nestle to speed up product innovation

LONDON, May 24 (Reuters): Food giant Nestle plans to combine its scientific research operations into a single unit in an attempt to speed up development of new products at a time when competition from smaller rivals is intensifying.

The world's biggest packaged food maker, with brands including Nescafe coffee and Perrier water, has been struggling with slowing sales growth for years.

Now it is also under pressure from activist shareholder Daniel Loeb to increase investor returns.

To better compete, the Swiss company told Reuters it would merge its Nestle Research Center and Nestle Institute of Health Sciences (NIHS) into one organiaation called Nestle Research.

The new entity, to be announced later on Thursday, will continue to be based in Lausanne, Switzerland and will employ around 800 people.

The reorganization, effective July 1, will not involve job cuts or the closure of facilities, a spokesman said.