Nestle buys majority stake in Brazilian high-end chocolate manufacturer

Nestle is buying a majority stake in Brazilian premium chocolate maker Grupo CRM, the Swiss food group said on Thursday.

Publication: 07.09.2023 - 10:59
Nestle buys majority stake in Brazilian high-end chocolate manufacturer
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Grupo CRM operates with a direct-to-consumer model, boasting over 1,000 chocolate boutiques bearing the Kopenhagen and Brasil Cacau brands, along with a thriving online presence, as stated by Nestle.

Nestle, in the process of acquiring this stake from the private equity firm Advent International, has chosen not to disclose the financial specifics of the deal, which is anticipated to be finalized in 2024.

This acquisition aligns with Nestle's overarching strategy to bolster its footprint within the super-premium chocolate sector. For reference, chocolate bars under the Kopenhagen label are retailed at 29.90 Rials (equivalent to US$6), while a box of chocolates typically sells for approximately 130 rials.

Laurent Freixe, Nestle's CEO for Latin America, expressed, "This acquisition further expands and reinforces our presence in the confectionery market in Brazil, enabling us to enter the high-end segment. Both Kopenhagen and Brasil Cacau offer premium chocolates that enjoy great favor among Brazilian consumers."

In a noteworthy development back in June, the Brazilian competition regulator Cade granted approval for Nestle's acquisition of Chocolates Garoto, more than two decades after the initial announcement. As part of the approval conditions, Nestle committed to refraining from making any acquisitions that would constitute at least 5% of the Brazilian chocolate market for a period of five years.