Nestlé sells Russian confectionery business

By Helen Glaberson

- Last updated on GMT

Related tags: Confectionery products, Russia, Nestlé

Nestlé has sold its Russian confectionery division, Altai Confectionery, in a bid to focus on its core brands.

Private company Corminus Enterprises, which is headed by former Nestlé executive Igor Kubanov, is to acquire the business from Nestlé for an undisclosed sum.

The transaction is expected to be closed in the second quarter of 2011.

"The sale of this company will allow Nestlé in Russia to focus resources on its well established core confectionery brands such as Kit Kat, Rossiya-Schedraya Dusha and Nestlé,"​ said Stefan De Loecker, CEO of Nestlé Russia.

Nestlé acquired Konditerskaya Firma Altai in 1998. The plant, which produces confectionery under brands including Altai and Savinov, made around 17,000 tonnes of confectionery products in 2009.

A comment from the Swiss group on the sale was not forthcoming prior to publication.

Development in Russia

Nestlé has built up a strong presence in Russia over the past 15 years. The Swiss group operates 13 production facilities in the country, and has 10 sales offices and around 10,000 employees.

In August last year, Nestlé announced plans to upgrade its premium chocolate manufacturing facility in the Samara region of Russia, which will transform it into a key competence centre for confectionery products in Europe.

Laurent Freixe, Nestlé executive VP and zone director for Europe, noted that the transfer of the premium brand Comilfo production lines to the Samara facility would strengthen the factory as an R&D centre for confectionery products.

Wafer investment programme

Meanwhile in the UK, Nestlé completed the first part of its £15m three year investment programme last month at its Kit Kat factory in York.

The company has spent £5m on the first stage of the project. Once it is finished, the factory will be fitted with further new and upgraded ovens that manufacture the wafers for Kit Kat.

Nestlé claims the new assets will help cut CO2 emissions by 60 per cent and gas consumption by 30 per cent.

“They will allow us to be more efficient than we have ever been before reaching figures in excess of 93 per cent,”​ said the Swiss group.

Related topics: Manufacturers, Nestlé, Emerging Markets

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