Nestlé Buys Majority Stake in Terrafertil
VEVEY, SWITZERLAND – On Friday, Nestlé announced that it purchased a majority stake in the natural and organic plant foods company Terrafertil. Terrafertil is an Ecuadorian company, founded in 2005, which has expanded through South America and Britain and into the United States. Terrafertil grows and produces goldenberries—a fruit packed with vitamin A, vitamin B, fiber, and iron.
According to Reuters, Nestlé has purchased this valuable stake in an attempt to sway the negative impact of the falling packaged food sector and to expand its profile in healthy foods.
Laurent Freixe, CEO of Nestlé Zone Americas said, "We are excited to welcome Terrafertil and its employees to the Nestlé family. Its natural, organic, and healthy products fully support Nestlé’s purpose to enhance quality of life and contribute to a healthier future. This investment allows us to strengthen our presence in fast-growing categories such as plant-based foods, beverages, and healthy snacks, known as ‘superfoods’ due to their high natural nutrient content. Terrafertil will continue to be managed by its founders. It will operate as a stand-alone entity, to leverage its unique corporate culture including entrepreneurial spirit, agility and flexibility."
According to Reuters, Nestlé has not yet reported how much the purchase has set the company back, or exactly how large of a share the majority stake is. For reference, in earlier attempts to increase the brand’s healthy image, Nestlé spent $2.3 billion on Atribum Innovations, a Canadian vitamin maker, last December. In addition to those efforts, Nestlé announced deals with Sweet Earth vegetarian foods and Blue Bottle coffee this past September, as well as a deal for Chameleon Cold-Brew coffee last November.
"Nestlé brings several benefits and synergies. Beyond expanding our presence and distribution around the world, we will capitalize on its experience in areas such as Research and Development, marketing knowledge, and operational efficiencies," said the Bermeo brothers, Founding Partners of Terrafertil. "Above all, we share Nestlé's commitment to society, to the communities where it operates and the environment."
We will keep you in the loop if any more details concerning Nestlé’s acquisition of a majority stake in Terrafertil arise, and, until then, stay tuned to AndNowUKnow.
