Food News

Nestlé is the world's largest food company. Last year, the group reported a decline in sales and profits in its traditional business.

The focus will now be on four of the previous six business areas. According to the CEO, these are coffee, pet food, nutrition, and food and snacks. The brand policy is also being reviewed, with a streamlining of product lines expected. The health division will be assigned to the nutrition division. Parts of the dietary supplements and vitamins division are to be discontinued, according to analysts.

The ice cream division was already outsourced in 2016 to Froneri, a company founded by Nestlé together with the investment group PAI Partners. Nestlé contributed part of its European ice cream business and, a few years later, transferred its North American ice cream business with the Häagen-Dazs and Drumstick brands.

At the beginning of the year, negotiations began on the spin-off of the water division with the well-known San Pellegrino brand, which are expected to be completed in 2027.

The recent international headlines about product recalls in the baby food sector due to cereulide contamination are likely to make the strategic restructuring of the group appear even more urgent. There is speculation that up to 16,000 employees (6% of the workforce) will be made redundant in order to get the group back on track financially.

Author: Dr. Frank Mörsberger, AGROLAB GROUP