Nestlé is divesting its Cremora creamers business in South Africa to dairy powerhouse Lactalis, emphasizing its ongoing commitment to the broader region.
The Cremora brand has been a staple in South Africa for over 77 years, with production occurring at Nestlé’s facilities in Babelegi and Potchefstroom. A Nestlé spokesperson confirmed that both manufacturing sites are included in the transfer, assuring that there will be no job losses as a result of this transaction.
In addition to its production in South Africa, Cremora is manufactured in Zimbabwe at a facility in Harare, which will cease production post-acquisition. The Harare site will shift its focus to the Everyday and Cerevita product lines, which include creamers and breakfast cereals.
While Nestlé moves forward with the sale of Cremora, the company has reiterated its “long-term commitment to the region’s economic development by evolving its business model to remain competitive and sustainable” in the East and Southern Africa (ESAR) market.
Currently, Nestlé operates five production facilities in South Africa that create a diverse range of products, including powdered and liquid beverages, milk products, ice cream, health sciences products, prepared dishes, and confectionery. Meanwhile, the Harare facility in Zimbabwe is its only production site in the country.
“This strategic realignment will ensure the Harare facility remains an integral part of Nestlé’s efforts to drive future investments and sustainable development within Zimbabwe,” the company stated.
Mota Mota, Nestlé’s regional head of communications, remarked, “We believe that Cremora is in good hands with Lactalis. 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.”
The acquisition of Cremora by Lactalis is still pending regulatory approval, and the financial details of the deal have not been disclosed.
Lactalis, headquartered in France, operates several brands in South Africa, such as Président, Parmalat, Melrose, Steri Stumpie, and Bonnita. Herman Janse van Rensburg, general manager for Lactalis in South Africa, commented, “This move aligns with our strategy of innovation and diversification of our product offering to cater to local consumer preferences. 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.”
By keeping abreast of the latest trends in the food and beverage industry, this strategic transition positions both Nestlé and Lactalis favorably within the competitive landscape of the food and drink business. As market dynamics evolve, understanding food and drink consumer trends becomes increasingly vital for sustaining growth and innovation.
