Nestle's rank

McCloud, Calif. -

Dear Editor,

At the Feb. 18 McCloud Public Forum, Joan Smith Nestle cheerleader and member of the Siskiyou County Economic Development Council defended Nestle’s corporate reputation by stating that it had just been listed as the 10th most trusted brands according the financial magazine Barron’s.

She said we could look that up on the web. I did and it is obvious Joan did not read the article.

What she was referring to is an annual survey where top money managers rank the 100th largest public companies in terms of respect or lack thereof. You are guaranteed a spot on the list based only on your market capitalization.

Respect is given based primarily on strong management and strong business strategy. Trust and ethics have little to do with it. This must explain, in part, why in the 2007 survey even AIG received a respectable position of 30.

What is also noteworthy is that Nestle’s rank of 10 was awarded in 2008. In 2009 they dropped down the list to 20.

So what does this tell us about Nestle? If you are looking for a long term position to add to your stock portfolio, beware — Nestle’s respect amongst the financial community is falling.

If you are a citizen of McCloud wondering if you can trust Nestle, look elsewhere for information.

Debra Anderson
McCloud