Dive Brief:
- Nestle SA is attempting a rebranding of its Callier brand as a premium chocolate product to increase Swiss chocolate sales in foreign countries, according to chairman Peter Brabeck-Letmathe.
- Nestle's CEO Paul Bulcke called premium chocolate a “small, intimate frustration,” as the company has had difficulty ramping up its game. Rivals like Swiss company Lindt & Spruengli AG bought Russell Stover Candies Inc. last year and Kraft Foods Inc. bought Cadbury Ltd. in 2010, according to Bloomberg.
- After the death of Ferrero Rocher's founder, Michele Ferrero, rumors spread that Nestle could acquire the Ferrero empire, but those rumors were squashed soon after by CEO Giovanni Ferrero.
Dive Insight:
As the world's biggest food company, Nestle has not been immune to global currency fluctuations, particularly in the Russian market. However, Nestle says that it still sees long-term possibilities in Russia. To fight currency volatility and the country's waning market, Nestle plans to attempt to incorporate more local materials and ingredients into its products.
