Nestlé Reorganizes Activities in Southern Africa, Sells Cremora Brand to Lactalis
Nestlé, the Swiss giant in the agro-food industry, is reorganizing its activities in Southern Africa. According to a press release published on September 11, the Nestlé East and Southern Africa Region (ESAR) division plans to sell its Nestlé Cremora cream brand to French dairy group Lactalis.
This transaction, which is still subject to approval by competition authorities, marks a strategic turning point for Nestlé in the sub-region.
In South Africa, Nestlé Cremora is currently produced in two factories located in Babelegi and Potchefstroom. Although the details of the sale have not been disclosed, Nestlé indicates that this decision is motivated by a desire to refocus its activities to strengthen its long-term competitiveness.
This restructuring comes at a difficult economic time for Nestlé. In 2023, the group recorded a 9% decline in dairy product sales in the Asia, Oceania, and Africa (AOA) zone, equivalent to 3.3 billion Swiss francs (3.9 billion USD).
In the first half of 2024, the group's global revenue in this region fell by 6.8%, reaching 8.4 billion Swiss francs (9.9 billion USD). Nestlé has notably lost market share in dairy products, despite gains in other segments such as confectionery and ready-to-drink coffee.
For Lactalis, the acquisition of Nestlé Cremora represents an opportunity to diversify its product portfolio and strengthen its presence in the South African dairy industry.
This operation will allow Lactalis to increase its influence in a rapidly evolving market.
