Nestlé buys majority stake in Turkish confectionery brands
28 Dec 2010
Swiss food conglomerate Nestlé SA, the world's largest food and beverage company, yesterday acquired a majority 51-per cent stake in Turkish confectionery brands Dogan and Balaban Gida for an undisclosed sum, through its Turkish arm Nestlé Turkey.
The deal enables the Swiss company to strengthen its presence in the lower-priced candy market.
Nestlé said that the acquisition is in line with its continuous plan of expanding its business in emerging markets.
Dogan was founded in London in 1976 and provides high quality biscuits, chocolate and wafers. The firm is among the most important producers in the Turkish food sector.
Balaban Gida that was set up in 1993 has become one of the leading sectors with its first-class products.
The two companies produce various biscuits, chocolate and wafers, and also hold the Toto brand, the sales champion of the egg chocolate market totaling 50 million Turkish Liras, Turkish newspaper Hurriyet Daily News & Economic Review reported.
The agreement, subject to regulatory approval, marks the Swiss chocolatier's latest drive to expand its popularly positioned products (PPS) business, specifically created for lower income consumers.Available in smaller or 'daily-portion' packs to be bought on a regular basis, Nestlé's PPPs are manufactured from local raw materials to minimise value chain costs