Nestlé Confirms Strategy for Nutrition, Health and Wellness Businesses

Switzerland: Strategy Review Nestlé Confirms Strategy for Nutrition, Health and Wellness Businesses

2018-09-20 MA Alexander Stark

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As part of its regular strategy review earlier this year, Nestlé assessed its Nutrition, Health and Wellness strategy. The board fully confirmed the company's strategic direction and resolved to sharpen its focus on food, beverage and nutritional health products.

Vevey/Switzerland — By enhancing the group's focus, the Board expects to deepen resource commitment to its key growth initiatives and facilitate the implementation of its accelerated long-term value creation strategy.

After further analysis and consideration, the board has come to the conclusion that the future growth opportunities of Nestlé Skin Health lie increasingly outside the group's strategic scope, the company announced in a statement. The board has therefore decided to explore strategic options for Nestlé Skin Health. This review is expected to be completed by mid-2019.

Nestlé Skin Health provides science-based solutions to meet the specific skin health needs of healthcare professionals, patients and consumers. It offers a range of medical and consumer brands through three complementary business units, including Epiduo and Soolantra in Prescription, Restylane and Azzalure in Aesthetics, Cetaphil and Proactiv in Consumer Care. Headquartered in Lausanne, Switzerland, Nestlé Skin Heath employs more than 5,000 people across 40 countries. The unit had sales of around $ 2.8 billion in 2017.

Nestlé completed the acquisition of a majority stake in Terrafertil. (Nestlé)

Paul Bulcke, Chairman of the Board, said that the board had fully reconfirmed the value potential of their Nutrition, Health and Wellness strategy. Sharpening their strategic focus on Nestlé's core food, beverage and nutritional health products offered the best opportunity for long-term profitable growth and was fully in line with the pursuit of the company's purpose, he added. As a consequence, the board was convinced that exploring strategic options for Nestlé Skin Health was in the best long-term interest of this business and shareholders.

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