News & Analysis on the Dairy Industry & Markets
26-Aug-2019 Last updated on 26-Aug-2019 at 07:23 GMT
Under the agreement, Nestlé will license its Ninho and Molico brands, exclusively for the liquid milk segment in Brazil, to Laticínio Bela Vista, for a period of 10 years.
The aim of the partnership is for the Piracanjuba brand owners to accelerate the expansion of the UHT segment in the country and position Nestlé's two brands as leaders in the category as well.
Marcelo Melchior, president of Nestlé Brazil, said, “This is the beginning of a partnership between companies that have a strong presence in Brazilian homes and that have the trust of consumers. We believe we have found the ideal partner to leverage our brands in the UHT milk segment.”
Under the agreement, Laticínio Bela Vista will take over the Nestlé units that produce UHT milk, utilizing the lines already installed and absorbing most of the employees at Três Rios (RJ) and Araraquara (SP) and part of the factory in Carazinho (RS).
Cesar Helou, superintendent of Laticínio Bela Vista, said one of the key points throughout the negotiation between companies was the maintenance of jobs.
“We consider that people are essential to expand the presence of Ninho and Molico brands in the country, and to provide the service that both consumers and the trade deserve,” he said.
“We admired Nestlé for a long time and were very happy and honored with this partnership. It is a company that inspires us to be better every day, striving for excellence in products and services, with great respect for consumers, employees and society. We have a lot to grow together.”
Terms of the agreement will be submitted to the Administrative Council for Economic Defense (CADE), and it is estimated that the deal will take effect by the end of the year.
In Brazil, Nestlé installed its first factory in 1921, in the city of Araras, for the production of the condensed milk Milkmaid, which would later be known as Milk Girl. The company has industrial units in the states of Sao Paulo, Minas Gerais, Bahia, Pernambuco, Goiás, Rio de Janeiro, Rio Grande do Sul and Espirito Santo.
It employs more than 30,000 and generates another 200,000 indirect jobs, which collaborate in the manufacture, marketing and distribution of more than 1,000 items. Nestlé is present in 99% of Brazilian homes, according to a survey by Kantar Worldpanel.
Laticínio Bela Vista has a portfolio of more than 140 products, distributed under the Piracanjuba, Pirakids, LeitBom, ChocoBom, MeuBom and Viva Bem brands, in addition to partnering with Blue Diamond, the world's largest almond producer, with the beverage Almond Breeze.
The company has four manufacturing units, in Bela Vista de Goiás (GO), Governador Valadares (MG), Maravilha (SC) and Sulina (PR). Together, the factories have the capacity to process more than 5m liters of milk per day. The company is one of the four largest in the Brazilian dairy industry.
A look at LATAM dairy trends: Health & wellness, local flavors and premiumization24-Jul-2019By Niamh MichailFrom probiotic cheeses in Brazil to mamey sapote-flavored drinking yogurt in Mexico, we take a look at some products tapping into Latin America's top dairy trends, according to market research firm Zenith Global
Lactalis completes deal for Brazilian cooperative Itambé16-Jul-2019By Jim CornallLactalis do Brasil, a subsidiary of Groupe Lactalis, has closed its acquisition of the Itambé Alimentos S/A cooperative.
Milk production limps along in Argentina and Uruguay25-Jun-2019By Jim CornallThe last few years have felt like a roller coaster for milk production at South America’s key dairy exporters. An ongoing push toward expansion has repeatedly collided with climatic issues and economic concerns resulting in dramatic year to year swings...
Ice cream for multi-sensorial experiences – new consumer trends Paid for and content provided by Cargill
How the EU cheese category is driving innovation with quality schemes Paid for and content provided by European Union
The quest for the perfect cheddar – solving challenges for efficiencies
texture and flavorPaid for and in partnership with IFF