I don't think an explanation involving 'YMMV' and 'sounds like' is a sufficient support for your opening statement that it is 'an awful example'.
They have simply entered a market with a competing product. Unless you have evidence that their product is inferior to competing solutions and that they know it, but intend to overcome that problem by outmarketing the competition, then you really don't have any support for your position. Nestle has nothing to do with it until then.
I'm only relaying what I've heard an employee tell and I assume good faith: they changed their product such that it would be suitable for a new market and a nice side effect is that the product becomes available at all (which is nice because it improves matters). I have no stake in this and will readily revise my ideas, but not based on an unsupported accusation.
They have simply entered a market with a competing product. Unless you have evidence that their product is inferior to competing solutions and that they know it, but intend to overcome that problem by outmarketing the competition, then you really don't have any support for your position. Nestle has nothing to do with it until then.