Nestlé is selling its Cremora creamers business in South Africa to dairy giant Lactalis but stressed the company remains committed to the region as a whole.
The Cremora brand, present in South Africa for more than 77 years, is currently manufactured at Nestlé’s plants in Babelegi and Potchefstroom. Both of those sites are part of the deal, a spokesperson confirmed, adding that no jobs will be lost.
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Cremora is also produced in neighbouring Zimbabwe, at a site in the capital Harare, which will cease to manufacture the brand post the transaction with Lactalis. However, the plant will instead focus on making the Everyday and Cerevita lines of creamers and breakfast cereal.
While Nestlé is offloading Cremora, the world’s largest food company said it is reaffirming its “long-term commitment to the region’s economic development by evolving its business model to stay competitive and sustainable”, referring to the East and Southern Africa (ESAR) region.
According to its latest annual report, Nestlé operates five production facilities in South Africa for a range of products: powdered and liquid beverages; milk products and ice cream; health science products; prepared dishes; and confectionery.
In Zimbabwe, the site in Harare is its only facility.
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By GlobalData“This strategic realignment will ensure the Harare facility remains an integral part of Nestlé’s efforts to drive future investments and sustainable development within Zimbabwe,” the company said in a statement.
Mota Mota, Nestlé’s regional head of communications, said: “We believe that Cremora is in good hands with Lactalis. This transition is in the best interests of our business, employees, customers, partners, and consumers, ensuring that Cremora continues to thrive and deliver quality products under new ownership.”
The deal with Lactalis’ business division in South Africa is subject to regulatory approval. Financial terms were not disclosed.
France-headquartered Lactalis has operations in South Africa located in the Western Cape, Eastern Cape, Gauteng and KwaZulu Natal, according to the statement. Brands marketed in the country include Président, Parmalat, Melrose, Steri Stumpie and Bonnita.
Herman Janse van Rensburg, the general manager for Lactalis in South Africa, said: “This move aligns with our strategy of innovation and diversification of our product offering to cater to local consumer preferences.
“Furthermore, we look forward to welcoming our new colleagues to the Lactalis SA family as we continue to build on the rich heritage of Cremora together to ensure seamless continuity for customers and consumers.”
