Nestle SA considering selling sports nutrition brand PowerBar: report
28 September 2013
Nestle SA is looking to sell its sports nutrition product PowerBar, which could fetch the Swiss food giant several hundred million dollars, Reuters reported, citing four people familiar with the matter.
Vevey, Switzerland-based Nestle had in August said that it would take a good look at its non-performing brands after having posted its weakest quarterly results in four years.
Analysts had speculated that Nestle may divest brands like regional mineral water brands Arrowhead and Deer Park, Lean Cusine frozen meals, Jenny Craig diet centres and Powerbar.
Power was founded by Canadian athlete and businessman Brian Maxwell along with his Jennifer Biddulph, a nutritionist.
Maxwell sold the brand, which had annual sales of $150 million in 2000 to Nestlé for $375 million.
The brand, which now includes a range of energy bars, sports drinks, gels and protein supplements, has annual sales of about $175 million, according to a Reuters' source.
Other companies have recently reassessed their portfolio of non-performing assets and have been divesting some brands in developed regions.
British pharmaceutical giant GlaxoSmithKline agreed to sell its Lucozade and Ribena nutrition drinks to Japan's Suntory Beverage & Food Ltd for $2.11 billion, Anglo-Dutch consumer goods giant Unilever sold its Wish-Bone salad dressings business to US-based Pinnacle Foods for $580 million and Campbell Soup sold some of its European soups, sauces and simple meals brands to private equity firm CVC Capital Partner for an undisclosed sum.