Dive Brief:
- Nestle is talking privately with three potential buyers about a sale of Jenny Craig, which sells packaged foods and operates weight-loss centers, according to Reuters.
- The move is not unexpected. Nestle said last week it planned to sell low-performing units.
- Nestle paid $600 million for the brand in 2006.
Dive Insight:
We're hard-pressed to remember any sector of the food industry ever falling apart as quickly as the weigh-loss brands are now. The Web has unleashed an unimaginable level of do-it-yourself sites and communities that offer guidance and support that equals or surpasses what the weight-loss companies offer -- and they do it for free. How can anyone compete? Nutrisystem is trying to revamp its approach. Now Nestle appears ready to wash its hands of the entire segment. We expect similarly dramatic moves soon from Weight Watchers, Herbalife and the rest.