Swiss food group Nestlé said it does not need a leading position in the US chocolate market.
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Speaking to local finance newspaper Finanz und Wirtschaft, Nestlé CEO Peter Brabeck downplayed talk of the group’s need to reinforce its position in the US.
This summer saw Nestlé hook up with UK confectionery and soft drinks group Cadbury Schweppes in a combined bid to buy top US chocolate maker Hershey. The bid was topped by US gum maker Wrigley, although in the end the sale was abandoned altogether.
It is Nestlé’s general policy to be first or second in any market in which it operates, but in the US chocolate market it is a humble third behind Hershey and Mars, reports Reuters. However, Brabeck told the Swiss paper that it was possible to boost profits and win market share in key categories from its current position in the US. He said it was neither possible nor necessary for it to become the second largest player in the US chocolate market.
Brabeck confirmed that Nestlé is on the lookout for purchases in the field of nutrition, although he stressed that the company remained a food manufacturer, not a pharmaceuticals company.
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By GlobalDataHe also confirmed Nestlé’s targeted real internal growth of 4% for the long term, although the group does not expect to reach this target this year.
