Nestlé has acquired a majority stake in natural snack food company Terrafertil. In a series of acquisitions and sales, Nestlé continues to redirect its business towards the health and wellness sector.
The Natural Potential in Latin America
Founded in 2005 by five Ecuadorian entrepreneurs and managed by three founding brothers David, Raul and Daniel Bermeo, Terrafertil offers a wide portfolio of natural and mostly organic products, including its flagship brand Nature’s Heart. The company expanded its presence in Mexico, Colombia, Peru, Chile and the United Kingdom. In 2017, Terrafertil entered the U.S. market with the purchase of Essential Living Foods.
In addition to expanding its product portfolio, the acquisition will allow Nestlé to widen its presence in the fast-growing Latin America market. According to an Allied Market Research report, the savory and snack category of the global flavors market will grow at a CAGR of 6.3%, led partially by the strong potential in Latin America. Per the transaction, Nestlé will assume control of Terrafertil production facilities in Ecuador, Mexico, Colombia and Chile.
“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. Above all, we share Nestlé´s commitment to society, to the communities where it operates and the environment", said the Bermeo brothers, founding partners of Terrafertil.
A Health-Focused Push
The acquisition comes at a time of increased refocusing of Nestlé’s brand and business. In early 2018, Nestlé sold its U.S. confections business to Ferrero for $2.8 billion, citing a need to invest in pet care, bottled water, coffee, frozen meals and infant nutrition. Shortly after, Nestlé Waters North America announced an updated line of its Regional Spring Water brands.
"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,” said Laurent Freixe, CEO of Nestlé Zone Americas.
