After 77 years, Nestlé East and Southern Africa Region (Esar) has decided to sell the Nestlé Cremora business to Lactalis South Africa, pending regulatory approval, as part of its strategic realignment of its operations following a meticulous evaluation process. The value of the transaction was not disclosed.
Nestlé Cremora is a beloved creamer brand that has been a staple in South African households for more than 77 years, widely cherished by coffee and tea drinkers.
This comes after the multinational food and drink processing conglomerate replaced CEO Mark Schneider with Laurent Freixe in a bid to focus on food sales again after Schneider’s experimental bets saw it missing sales expectations for multiple quarters, with investors fearing it might soon drop its profitability targets.
Nestlé yesterday said the disposal of Cremora reaffirmed its Esar long-term commitment to the region’s economic development by evolving its business model to remain competitive and sustainable.
However, the multinational food- and drink-processing conglomerate warned that the decision would impact operations in Harare, where production of Cremora would cease and the focus would shift to brands such as Nestlé Everyday and Nestlé Cerevita.
Nestlé Cremora is manufactured in South Africa across two facilities in Babelegi and Potchefstroom, as well as Harare, Zimbabwe.
Its distribution spans across the east and southern African region, excluding countries in the east and Horn of Africa.
However, Nestlé Esar reaffirmed its long-term commitment to the region’s economic development by evolving its business model to remain competitive and sustainable.
Nestlé said the strategic realignment would ensure the Harare facility remained an integral part of Nestlé’s efforts to drive future investments and sustainable development within Zimbabwe.
Nestlé’s head of external communications, Mota Mota, said the decision was reached after considering various factors and was not taken lightly.
“We believe that Cremora is in good hands with Lactalis SA – a leading food company known for its expertise and commitment to excellence. This transition is in the best interests of our business, employees, customers, partners and consumers, ensuring that Cremora continues to thrive and deliver quality products under new ownership,” Mota said.
“As we embark on this transition period, the welfare of our employees remains a top priority, with assurances that job security, remuneration and benefits will remain unaffected. We express our heartfelt gratitude to our dedicated workforce for their hard work and commitment in building Nestlé Cremora into the household name it is today,"
Lactalis is a 90-year multinational food company. In South Africa, the company is home to brands such as Président, Parmalat, Melrose, Steri Stumpie and Bonnita; with operations in the Western Cape, Eastern Cape, Gauteng and KwaZulu Natal.
Lactalis SA’s general manager, Herman Janse van Rensburg, said they were excited to welcome the iconic brand to Lactalis South Africa.
“This move aligns with our strategy of innovation and diversification of our product offering to cater to local consumer preferences,” he said.
“Furthermore, we look forward to welcoming our new colleagues to the Lactalis SA family as we continue to build on the rich heritage of Cremora together to ensure seamless continuity for customers and consumers.”
BUSINESS REPORT