Nestle To Acquire Movenpick Worldwide

New Delhi: | Updated: Jan 24 2003, 05:30am hrs
Nestle SA, on Thursday, announced its decision to acquire the Movenpick brand for ice cream products and related ice cream businesses worldwide with the exception of the New Zealand manufacturing operations. Movenpick branded ice cream sales worldwide amount to approximately CHF 300 million, mostly through license partners. The Swiss business, including exports, accounts for around CHF 40 million. The acquisition price was not disclosed.

But the key question: Will Nestle SAs acquisition of Movenpick ice cream brand worldwide, see the Swiss food majors Indian subsidiary Nestle India, finally, making its much awaited foray into the ice cream market While Nestle India has no answers as yet but considering the interest shown by the Swiss food majors Indian subsidiarymore precisely by its chief Mr Carlo M Donatiin the past, and also the fact that Movenpick has been around in the country for sometime, never mind its performance, the possibility cannot be ruled out.

Ice-cream is an interesting category..., Mr Donati has often been heard saying when asked to respond to queries about Nestle Indias future plans. Mr Donati has also added that but I dont want to be a loser. Mr Donatis apprehension about the profitability of the sector may not be unfounded.

Swiss major Movenpick (now in Nestle SAs fold) which has fallen short of projections, the domestic market has been giving them a cold shoulder.

Movenpick, itself, has not had a smooth stay here ever since it stepped into the domestic market. The global major was last heard restructuring its operations after it parted ways with its local franchisee, Ravi Jaipuria. While the companys general manager (South Asia) Mr Neeraj Jain could not be contacted, it remains to be seen what kind of relationship will the two have in the country.