...Nestlé welcomes Gerber to the family

IIPM PUBLICATION

A whopping $5.5 billion all cash deal. And Gerber blissfully walked into the waiting arms of its new mommy …. For what seems like an eon now, Nestlé has coveted Gerber, and why not? The cherubic face of the Gerber tot dominates the US baby food market; with a cool 79% market share (the boys at Morgan Stanley say so!).

Peter Brabeck-Letmathe, Chairman and CEO, describes the deal as “a decisive step to establish Nestlé Nutrition as the undisputed global leader in the nutrition field.” Nestlé’s keen interest in this deal reiterates its strategy to move away from mass items like bottle milk, towards higher- margin foods. The stock markets, too, were quite indifferent to the mammoth $5.5 billion spent by Nestlé, with share prices almost flat at 483.25 francs (as on April 13).

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Source : IIPM Editorial, 2007

An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative