Nestlé announces closure of Nicaragua dairy plant, sale of Nordic culinary sauces brands

EUROPE – Nestlé, a global food giant, has made significant strategic decisions involving the closure of a dairy plant in Nicaragua and the sale of two cooking sauces and stock brands in the Nordics.

In Nicaragua, Nestlé will be closing the Matagalpa dairy plant due to current global dynamics for efficient and productive operations.

According to the CEO of Nestlé Central America, Juan Gabriel Reyes, the plant produces dairy products for Prolacsa, a local business owned by Nestlé and its manufacturing will gradually shift to other factories in Latin America.

The local company’s portfolio includes the Superior cheese and cream brand and the La Condesa dairy-based dessert label.

Despite the closure of the plant, Nestlé intends to maintain commercial management, sales of products in the country, and the purchase of green coffee for Nestlé’s global operations.

The closure is described as a “strategic decision at the regional level” aimed at ensuring the business can continue providing consumers with affordable, high-quality products.

Simultaneously, Nestlé has reached an agreement to sell two cooking sauces and stock brands, Oscar and Puljonki, to French ingredients supplier Solina.

The transaction, expected to close by the end of March, includes the takeover of the brands’ respective factories in Denmark and Finland.

The acquisition covers products primarily targeted at the foodservice industry in Denmark, Finland, Belgium, Germany, France, and the Netherlands. The annual revenue generated by both brands combined amounted to €45 million (US$48.5 million) in 2023.

Torben Emborg, Head of Nestlé Nordics, expressed confidence in Solina as the right new owner for the brands, ensuring the continued success of the Professional Premium Culinary Business in the Nordics.

“Nestlé remains committed to the Nordics, with Hälsans Kök plant-based protein being the sole food brand remaining in Nestlé’s Nordic Professional Premium Culinary range after the transaction.”

Solina, with 39 production sites across North America and Europe and an annual turnover of €1.2 billion, sees this acquisition as strengthening its position in the foodservice sector. S

Solina’s CEO, Anthony Francheterre, emphasized the move’s significance in their ambition to lead across various channels in the global food landscape, leveraging the benefits from their global position and strong connections within the European foodservice sector.

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