The move underscores Nestle’s desire to reshape its business to new consumer trends and healthcare as it finds ways to boost returns of investment to shareholders.
On Monday, Nestle disclosed it has sold two of its tea brands in North America to Fireman Capital Partners, a private equity firm, for an undisclosed amount as it pushes to reshape its business on new consumer trends and healthcare.
Confirming the sale, Fireman Capital Partners stated, it has linked up with Dunn’s River Brands to buy the Sweet Leaf Tea and Tradewinds businesses from Nestle North America.
The deal is expected to be completed by the end of this year.
Under Mark Schneider, Nestle has embarked on an overhaul of its brands strategy as it seeks to overcome sluggish growth in its traditional businesses.
In this context, earlier this year, Nestle announced the acquisition of Atrium Innovations, a Canadian vitamin maker, for $2.3 billion, marking its fourth purchase in recent months.
In September, it purchased Sweet Earth vegetarian foods and Blue Bottle coffee and in November it bought Chameleon Cold-Brew coffee.
These moves once again underscore the Swiss giant’s move to adjust to a market where customers prefer smaller, independent brands.
Ever since the maker of Nescafe coffee came under pressure from activist shareholder Third Point, it has announced a margin target as well as a share buyback program.
In order to boost shareholder’s return, the firm has also been trimming its operations including cutting jobs in its skin health business.
In June, Nestle stated it might divest its U.S. confectionery business, including its mass-market brands such as Butterfinger, Crunch and 100 Grand which could be valued at nearly $2 billion.