ZURICH (Reuters) -Nestle is buying a majority stake in Brazilian premium chocolate maker Grupo CRM, the Swiss food group said on Thursday.<\/p>\n\n\n\n
Grupo CRM operates a direct-to-consumer model, with more than 1,000 chocolate boutiques under the Kopenhagen and Brasil Cacau brands and a strong, growing online presence, Nestle said.<\/p>\n\n\n\n
Nestle, which is buying the stake from private equity company Advent International, declined to give financial details for the deal, which is expected to close in 2024.<\/p>\n\n\n\n
Website Brazil Journal on Wednesday reported that Nestle would pay about 3 billion reais ($602.78 million) for the company, while local newspaper Valor Economico reported the figure at 4.5 billion reais ($904.18 million).<\/p>\n\n\n\n
Nestle said Renata Moraes Vichi would continue to lead Grupo CRM’s operations as CEO and remain a minority shareholder.<\/p>\n\n\n\n
The executive has been with the company for 25 years and has built up and significantly expanded Grupo CRM, which currently only operates in Brazil.<\/p>\n\n\n\n
The acquisition is part of Nestle’s strategy to expand its presence in the super-premium chocolate segment.<\/p>\n\n\n\n
Chocolate bars under the company’s Kopenhagen brand sell for 29.90 Rials (US$6), while a box of chocolates retails for around 130 rials.<\/p>\n\n\n\n
“This acquisition further broadens and strengthens our confectionery presence in Brazil, enabling us to enter the high-end segment,” said Laurent Freixe, Nestle’s CEO for Latin America.<\/p>\n\n\n\n
“Kopenhagen and Brasil Cacau offer premium chocolates that are highly appreciated by Brazilian consumers.”<\/p>\n\n\n\n
In June, Brazilian competition regulator Cade approved Nestle’s acquisition of Chocolates Garoto more than 20 years after it was first announced.<\/p>\n\n\n\n
Among the conditions for the approval, the company agreed not to make any acquisitions that account for at least 5% of the Brazilian chocolate market for five years.<\/p>\n\n\n\n
($1 = 42,000.0000 rials)<\/p>\n