Nestlé is planning to sell New Zealand Manuka honey brand Egmont Honey, two years after acquiring the asset. The decision to divest the brand was based on the fact that “the business does not fit within our strategic direction,” according to a spokesperson. Nestlé has enlisted financial advisors Rothschild and investment bankers Cameron Partners to assist in finding a new buyer.
Egmont Honey, which falls under The Better Health Company (TBHC) umbrella group, was purchased by Nestlé along with TBHC’s Go Healthy supplements nearly two years ago. The deal also included an Auckland-headquartered contract manufacturing facility for vitamins, minerals, and supplements. The business was previously owned by Chinese asset-management group CDH Investments and TBHC’s founding investors, with CDH holding a majority stake since 2016.
At the time of the acquisition, Nestlé’s New Zealand CEO, Jennifer Chappell, expressed confidence that the brands would “strengthen our presence” nationally and internationally. Paul Bruhn, head of Nestlé’s Oceania branch, added that both products “complement our global portfolio of active lifestyle and health-and-wellness nutrition brands very well.”
Established in 2015, Egmont Honey produces table Manuka honey, honey-based lollipops and lozenges, as well as flavored honey spreads such as dulce de leche, creamed honey, and raspberry and passionfruit creamed honey. The brand exports to retailers worldwide, including CostCo, Walmart, Holland & Barrett, Ocado, Aldi, Coles, Hyundai, Life Pharmacy, and Woolworths, among others.
In a related development, publicly listed Manuka honey supplier Comvita recently received an “unsolicited” takeover offer from an offshore party at a premium to the market share price. The company has formed a board sub-committee and engaged Goldman Sachs as a financial advisor to manage the process.
Chairman Brett Hewlett confirmed that Comvita has provided the interested party with confidential access to the company and its information for due diligence purposes. This strategic move reflects the ongoing developments in the food and beverage industry trends, particularly in the food and drink business sector, and underscores the evolving consumer trends in the global market.
