Nestle has acquired an organic food company, and the big companies have taken the organic health route?
Nestle, which used to call you to eat chocolate candy, now wants to sell you more organic food.
On February 9, Nestlé announced the acquisition of most of the shares of organic plant food company Terrafertil, but did not disclose the specific transaction amount and shares. After the transaction is completed, Terrafertil will continue to develop its "unique brand culture" as an independent company managed by its current head ".
Terrafertil was established in Ecuador in 2005. According to the official introduction, it is the world's largest buyer of golden berries (also known as mushroom niang, hairy acid pulp, etc.). Its business also focuses on this kind of fruit, selling related fruit juice, dried fruit, nuts and wheat grass powder. Mexico, Colombia, the United Kingdom, the United States and other seven countries have its business, and now through the transaction has all been transferred to Nestle.
The deal is Nestlé's latest move to expand its health food business. The company is looking for new growth opportunities to offset its declining performance in packaged foods.
Terrafertil official website, which has their main products Golden Berry
For a long time, candy, chocolate and dairy products have been Nestle's main businesses, but in recent years, with the rise of the health wave, Nestle's dessert business has entered an overall decline since 2009. According to the 2016 financial report, the candy business accounted for only 3% of its total revenue in the United States, and its revenue has continued to decline since then. A month ago, Nestle officially withdrew from the US candy market by selling its US candy business to Italian chocolate maker Ferrero for $2.8 billion.
In the dairy sector, Nielsen's research data show that since February last year, the offline sales and sales of Nestle milk powder have also declined to varying degrees, with sales falling by more than 10% in April and May and sales falling by more than 15% in September. In July last year, the Chinese market also exposed five negative incidents, including unqualified Nestle whole milk powder and substandard selenium detection value of infant formula, which frustrated the brand image.
It is in the long-term interests of Nestle to reduce the proportion of these increasingly unprofitable businesses and increase investment in organic food with more development prospects.
In fact, many large companies are actively investing in organic food, and this is particularly evident in the US market. Typical representatives are Amazon, which bought Whole Foods, the largest natural and organic food chain retailer in the United States, for $13.7 billion; General Mills bought the organic food brand Annie's for $0.28 billion; Unilever provided $9.2 million in financing for Sun Basket, an American organic food delivery service.
With the enhancement of health concept, American consumers begin to resist deep-processed food and show distrust of the products of large companies. Traditional food enterprises are facing varying degrees of performance decline. In contrast, advertised as healthy, natural organic food is becoming more and more popular. Danone has said that the size of the organic food industry reached $35 billion billion in 2015, and the growth rate of organic food is three times that of ordinary food. Danone acquired organic food company WhiteWave in 2016, hoping to knock on the door of organic food with dairy products.
In the pursuit of healthy consumer trends, big companies are also happy to create labels like "superfood. Terrafertil touted the golden berry as a superfood, rich in vitamins and antioxidants. Kellogg has also invested in Kuli Kuli, a food company that specializes in Moringa-related products. It says Moringa is a newly discovered superfood rich in protein, calcium, iron and vitamin C, which is in line with the new consumerism and is highly sought after.
According to data from consulting firm Mintel in May 2016, the number of products with labels like "superfood," "superfruit," and "supergrain" increased by 202 percent between 2011 and 2015.
In addition to investing in organic food, Nestle has also acquired Atribum Innovations, a Canadian vitamin manufacturer, Sweet Earth, a vegetarian food company, and Cold-Brew, a Chameleon of Cold Extract Coffee, to establish a health business in various ways.
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The "China Health and Nutrition Expo" (NHNE), sponsored by Sinopharm Reed Exhibition, is the largest professional exhibition of health nutrition and health products in China. Through two exhibitions a year (spring Shanghai, autumn tour), it has gathered tens of thousands of state-approved honest suppliers of blue hat health food and many new products and international health products, providing excellent brand promotion and product channel expansion services for domestic and foreign enterprises.
The 8th China Health and Nutrition Expo will be held on December 4-6, 2018 at the China Import and Export Fair Exhibition Hall (Guangzhou). The exhibition area is expected to exceed 40,000 square meters, bringing together 1000 product suppliers and professional service providers in the field of health and nutrition, as well as 100000 honest distributors, agents and terminal purchasers. It has become the best platform for merchants to find new products, exchange and learn, and master market information.
On December 4-6, 2018, multi brands gathered, Guangzhou held the 18th China International Health Expo and 2018 China (Guangzhou) Health Festival, the 8th China Health and Nutrition Expo, 2018 China Health and Nutrition raw materials/packaging/equipment Exhibition, International Natural Food and Beverage Expo.