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Nestle Aims to Focus on Non-Meat Products: Sells 60% of Herta Charcuterie
Business, Finance

Nestle Aims to Focus on Non-Meat Products: Sells 60% of Herta Charcuterie 

The increasing consumer demands have led to a major market transformation. Brands have now directed their attention to minimal packaging, sustainable sourcing and usage of vegan ingredients. Consequently, market trends have encouraged Nestle to sell 60 percent of its stake in German sausage maker, Herta Charcuterie.

The announcement made on December 20 revealed that the sale will be made to a Spanish company, Casa Tarradellas, as Nestle now wishes to concentrate more on non-meat products. The amount for the sale has not been finalised yet. Nestle will still own the vegetarian sausage of Herta. Moreover, the Swiss-based company would continue sale of ham products too as it is in alignment with the company’s focus on plant-based offerings.

As per Nestle, the Herta deal “will ensure the continuity of production sites and the current structure of the business, including its employees.” Currently, Herta is valued at €690 million ($768 million), making sale of cold cuts, meat products and dough throughout Germany, Belgium, France, Britain, Luxembourg and Ireland.

Nestle CEO Mark Schneider has promised to replace up to 10 percent of the Swiss food giant’s existing portfolio with products of the moment by the end of 2020. Earlier in November, when news for Nestle’s ‘triple play’ new plant-based bacon cheese burger came, he urged US audience to eat less meat.

UK-based company, Daring Foods has also shifted focus of plant-based chicken that will be made from five non-genetically modified ingredients – water, soy, sunflower oil, salt and natural flavouring (a mix of paprika, ginger, nutmeg, mace, cardamom). Co-founder and CEO Ross Mackay said, “We’re not here to be a gimmick, we’re here to be part of your life every day. There’s a big need for plant-based food that’s actually healthy.”

Although other companies in food industry have also amped up their game, the Herta deal with Nestle will surely lure customers. Following its idea of moving with the times, a Middle Eastern brand of Nestle, Nescafe Dolce Gusto has launched a smart machine in the UAE.

The Esperta machine allows consumers to relish coffee shop quality brews in the comfort of their home. Raef Labaky, the Business Executive Manager of Nestle Middle East, said, “We are pleased to be launching ESPERTA in the United Arab Emirates, following its successful unveil globally and in key markets across the Middle East region.”

The machine gives the option of two brewing modes and enables customers to personalize the temperature and size of their coffee. By connecting the machine via a Bluetooth, customers can save their preferences for their favourite cups and schedule preparations in advance. Nestle has also introduced an eco mode feature that automatically switches off the machine post five minutes of inactivity.

The Herta deal and the new smart machines introduced in the Middle East validate the strategy of Nestle, directed towards a sustainable and eco-friendly environment.

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