Nestle News
8 articles
Falling cocoa prices offer sweet relief for chocolate stocks ahead of Halloween
Cocoa prices have dropped 51% this year, providing relief to the global chocolate industry, especially as Halloween approaches. This price dip has positively impacted confectionery stocks, including Lindt, Hershey, Mondelez, and Nestlé, which have collectively risen 14% year-to-date. Despite previous high cocoa prices, chocolate makers have maintained their margins, showcasing the sectors resilience and consumer loyalty. Lindt has particularly excelled, with its stock rising significantly over various time frames. The article highlights the volatility in cocoa prices due to supply-side issues but notes the stability in chocolate equities as consumers continue to purchase despite price increases.
Osem Nestle establishes a fund to support the residents of Sderot
Osem Nestle Group is setting up a fund to support the residents of Sderot city, with a focus on industrial technological education. The fund, which has millions of shekels allocated to it, will operate in partnership with the Sderot municipality. The aim is to develop the citys industry and provide future opportunities for residents to integrate into essential areas of the Israeli industry and professions in science and technology. The fund will also offer scholarships to students at various universities and colleges, and assist in creating technological-industrial education projects in various educational institutions in the city.
Investment
Nestle Targets Consumers Losing Weight as Sales Growth Ebbs
Ozempic Threat Is Spurring a Slump in Snack and Beer Stocks
Walmart Inc. has reported a decrease in shopping demand due to the use of appetite-suppressing medications such as Ozempic and Wegovy. This has led to a drop in shares of food and beverage companies. The S&P 500 Consumer Staples Index fell by 0.5% on Friday, with companies such as Constellation Brands Inc., Kellanova, and Mondelez International Inc. experiencing losses. Retailers Walmart, Costco Wholesale Corp., and Kroger Co. also saw declines. Despite this, some investors remain skeptical about whether these medications will cause significant changes in consumer buying habits.
Customers
Nestlé Sets Up Foodtech Arm Under Israeli Food Manufacturer Osem
Nestlé SA is setting up a foodtech innovation arm under its Israel-based subsidiary, Osem Investments Ltd. The goal is to facilitate collaboration between Nestlé and Israeli foodtech startups. The Israeli innovation arm will help Israeli entrepreneurs connect with Nestlés scientists and facilities worldwide. The CEO of Osem Nestlé IL estimates an investment of millions of shekels per year for every development. At least two Israeli startups are expected to enter the global market by the end of the year.
PartnersInvestment
Froneri buys Israel's Osem-Nestle ice cream unit Noga
Froneri, Europes second largest ice cream manufacturer, has signed a deal to acquire Israels Noga Ice Creams. The current management of Noga will continue to lead the business in Israel, and Froneri plans to invest in local brands, products, and flavors. Osem, a subsidiary of Nestle, will sell its holding in Noga, but Nestle will retain a 50% stake in Noga as it owns half of Froneri. The financial details of the deal were not disclosed, but it is estimated to be worth several tens of millions of euros. Noga has 350 employees and distributes brands such as La Cremeria, Extreme, Cookilida, Crunch, and Gumigum. Froneri operates in over 20 countries with revenue of €2.6 billion and more than 10,000 employees worldwide.
Acquisition
Nestle CEO Ulf Mark Schneider visits Israel
Nestle CEO Ulf Mark Schneider is visiting Israel for a working visit. The visit includes meetings with the management and employees of Osem, a company fully owned by Nestle. Schneider and his team will also visit Osems plants in Israel and attend a dinner with Osems founders. This is Schneiders first visit to Israel since becoming CEO in 2017. Nestle has a company value of CHF 310 billion and annual revenue of CHF 92 billion.
PartnersCustomers
Nestle buys Israeli foodmaker Osem
Nestle has agreed to buy out shareholders of Osem for about $840m (€750m) and take the Israeli foodmaker private. Nestle already owns 63.7% of Osem and has offered 3.3bn shekels (€753m) or 82.5 shekels per share for the remainder. The deal is subject to approval from Osems minority shareholders. Osems shares surged on the news and Nestle plans to continue partnering with Osem management to develop the company.
Acquisition
