Swiss food giant Nestlé is apparently considering the sale of some of its local Brazilian brands in order to gain approval by Brazil’s competition authorities for a purchase of the Garoto business.
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Nestlé acquired Brazilian chocolate maker Garoto in 2002 but earlier this year Brazilian antitrust regulator Cade ruled against the acquisition and ordered Nestlé to sell the business.
“Nestle is preparing to present to Cade possible scenarios that would involve the sale of brand names that were cited as having too much market concentration,” a Nestlé spokesman was quoted by Dow Jones News as saying.
Nestlé’s acquisition of Garoto gave the Swiss multinational more than half of Brazil’s total chocolate market, more than three-quarters of the country’s chocolate syrup and bonbons market, almost 90% of the chocolate frosting market, and more than 75% of the chocolate bar market, Dow Jones reported.
“The company will try to show Cade the possibilities for boosting competition in the sector and have the decision on Garoto re-evaluated,” the Nestlé spokesman added.
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