The world's biggest food group, Nestle, expects fast-growing emerging markets to drive future growth, helped by new products aimed at ageing populations in mature markets. Mr. Paul Bulcke, the CEO of Nestle Group said in an interview to Reuters that despite debt problems in southern Europe and budget cutbacks across the continent, it remains optimistic on growth and would stick to its annual worldwide "Nestle model" for 5 to 6 percent growth over time. "The developed world has a few things to iron out but the worldwide growth is there thanks to the developing markets," said Nestle Chief Executive Paul Bulcke.

According to Mr. Bulcke forecasts for world growth of 3 to 4 percent this year were encouraging, and although western Europe was more depressed there was growth in certain categories such as medical nutrition for the elderly and home coffee systems like Nespresso and Dolce Gusto.

Many analysts believe Nestle shares are undervalued due to uncertainty surrounding its 30 percent stake in L'Oreal, the world's biggest cosmetics group, where it has the rights to 87-year-old Liliane Bettencourt's 31-percent stake, worth around $20 billion, if her family want to sell. Bulcke, however, said there were no plans to change the "status quo" over its stake in Paris-based L'Oreal, which Nestle has held for over 30 years.

Nestle has plenty of firepower, with $28 billion from the sale of its stake in eyecare group Alcon, but seems more focused on share buybacks, saying last week it had completed a 25 billion Swiss franc ($23.41 billion) programme launched in August 2007 and is about to start a further 10 billion franc buyback.

Mr. Bulcke took over as CEO in April 2008 from Mr.Peter Brabeck, who has continued as chairman, and Bulcke, fluent in six languages. The 55-year old Belgian, who joined Nestle to see the world and stayed 31 years, has had stints in South America and Eastern Europe before heading up the Americas region and turning it into Nestle's biggest and most profitable market.