In phase 2 (1999), they focused on customer segmentation, broadening the portfolio of pet products, and processes impacting retailers. Phase 3 began with the acquisition by Nestlé in2001/2002, during this period, time was spent deciding what processes should continue within NPPC, which ones would be done by Nestlé, and which organization had the best processes that we could learn from each other. Phase 4 (2005), NPPC became focused on the new product development process, improved techniques for market research, supply chain optimization, and human resource processes such as recruiting/selection, performance management, and culture. As 2009 began, they moved into the fifth phase of their continuous improvement effort: “Nestlé Continuous Excellence (NCE).”