This recent investment marks Nestle’s dedication to expanding its presence in the premium chocolate industry.
Grupo CRM, renowned for its brands Kopenhagen and Brasil Cacau, employs a direct-to-consumer business model.
Additionally, the company has more than 1,000 chocolate boutiques and a thriving online business.
Nestle resorted to buying the majority stake from Advent International, which is a private equity company. Although specific financial details of the deal have not been revealed, it is projected to be finalised in 2024.
Reports from Brazilian publications shed light on the potential financial scale of the agreement.
Expansion Bolstered by Investment
Website Brazil Journal suggested Nestle’s investment would total nearly 3 billion reais (€562 million). However, the local newspaper Valor Economico estimated the figure at 4.5 billion reais (€843 million).
Renata Moraes Vichi, a seasoned executive with 25 years of dedicated service to Grupo CRM, will retain her role as CEO and maintain a minority stake in the company.
Indeed, Grupo CRM, currently exclusively operating within Brazil, has seen significant growth under her leadership.
Nestle Strategic Moves in Brazilian Market
Nestle’s interest in Grupo CRM aligns with its plans to strengthen its position in the premium chocolate market. Within this niche, Kopenhagen brand chocolate bars are retailed at 29.90 Rials (€5.6), while a chocolate box gets 130 rials.
Laurent Freixe, Nestle’s CEO for Latin America, expressed the significance of this acquisition.
“This acquisition further broadens and strengthens our confectionery presence in Brazil,” he stated.
Freixe also affirmed that it enables Nestle to enter the high-end market. He further added that Kopenhagen and Brasil Cacau offer premium chocolates that are highly appreciated by Brazilian consumers.
This move follows Nestle’s recent approval by Brazilian competition regulator Cade for its acquisition of Chocolates Garoto.