Nestl has sold some of its confectionery brands in New Zealand C including Fabulicious Red Licorice, Mackintosh and Black Soldier C to Sydney-based firm Quadrant Private Equity.
As perhaps the restructuring, Nestl will cut development at its Wiri factory with as much as 55 jobs likely to proceed among the 270 workers. The flower manufactures a range of smaller confectionery collections for the New Zealand market.
Quadrant, which usually owns confectioner RJ’s and bought Australian’s Darrell Lea trapped on video tape, will offer Wiri staff losing its jobs new roles on RJ’s factory in Levin.
Nestle said it will shift its target to its major chocolate, cooking and medicated lozenge brands during New Zealand. Culinary products would be the main production at a Wiri factory, including Maggi soups, menu mixes and other products.
Martin Brown, Nestl general manager of confectionery New Zealand, explained: “It has been based on a careful consideration of the way to focus our activities as well as resources, recognising that our sugar confectionery range in New Zealand is essentially made up of smaller local models.”
RJ’s national sales manager Amy Regulation said: “We are extremely serious about this potential opportunity. Having the capacity to add these iconic NZ confectionery types to our business gives RJ’ohydrates greater strength within the confectionery class.
“The Nestle products are extremely popular inside New Zealand so it is our intent to keep the product recipes just as they are.”
Nestl offloaded its US confectionery unit to Ferrero in January intended for $2.8 billion as it comes under increasing pressure to target high-growth categories like coffee, kid nutrition, pet care and bottled water.
Earlier this month, naturalist investor Third Point necessary Nestl to divest as much as 15% of gross sales either through sales, spin-offs, or other methods to better align its assortment around key categories.
However, Nestl countered by just highlighting the “swift and decisive” stage the company is taking to deliver success.