Nestlé has divested its 40% interest in the Herta charcuterie business to Casa Tarradellas, granting full ownership to the Spanish food company. This strategic move signifies a shift in the food and beverage industry trends as collaboration dynamics evolve.
The Swiss food giant had initially partnered with Casa Tarradellas in 2019 when it sold a 60% stake in Herta. This collaboration aimed to enhance the food and drink business in Europe and capitalize on consumer trends towards charcuterie and frozen dough products.
In a brief announcement today, December 23, Nestlé confirmed the conclusion of this joint venture. The exact financial details of this transaction were not disclosed, leaving insights into the deal’s implications somewhat opaque.
This venture was not just limited to charcuterie; it also encompassed the Herta dough business across France and Belgium. When the partnership commenced in 2019, it was reported that the Herta charcuterie and dough divisions generated sales of €667 million (approximately $785.4 million today) in the preceding year.
Despite the potential revenue these joint ventures generate, Nestlé does not provide a breakdown of sales from them. Notably, the company’s 2024 annual report made no mention of Herta, Casa Tarradellas, or revenue specifics related to Spain.
Currently, Nestlé operates ten factories in Spain, diversifying across its extensive portfolio, which includes prepared foods, confectionery, pet food, and nutritional products.
Nestlé’s CEO, Philipp Navratil, appointed in September, indicated plans to reassess the group’s portfolio. “We must have a winning portfolio. I’ll be looking at everything rationally,” he stated in his initial results presentation.
Navratil outlined a framework for evaluating business performance based on four essential questions: Is this a growth category? Is the returns profile attractive? Are we positioned to win? And are we actually winning? Although he noted that most of the portfolio answered these affirmatively, he acknowledged opportunities for improvement.
Furthermore, as he presented Nestlé’s third-quarter results, Navratil revealed plans for significant restructuring, including 16,000 job cuts over two years. This will involve 12,000 white-collar roles and 4,000 positions within manufacturing and supply chain sectors.
He emphasized retaining focus on the “six big bets” initiative introduced by former CEO Laurent Freixe, who departed last month after a brief tenure. Navratil aims to address market-share losses and prioritize growth opportunities aggressively.
He stated, “We will be bolder in investing at scale and driving innovation to deliver accelerated growth and value creation.” This commitment speaks to the evolving landscape in the food and drink consumer trends where adaptability and boldness are essential for success.
As the industry continues to transform, companies like Nestlé must navigate these changes decisively to ensure they meet modern consumer demands and preferences.
