Nestle has sold Russian candy business Altai Confectionary

Nestle has sold Russian candy business Altai Confectionary

Nestle has sold Russian candy business Altai Confectionary to Corminus Enterprises, a private business headed by a former executive at the Swiss food giant.

Corminus Enterprises has struck a deal to buy Altai from Nestle for an undisclosed sum. Analysts in the Russian media estimate the price tag at US$30-50m. The transaction is expected to be closed in the second quarter of 2011.

Nestle acquired Konditerskaya Firma Altai in 1998. The plant, which produces confectionery under brands including Altai and Savinov, made around 17,000 tonnes of confectionery products in 2009.

"The sale of this company will allow Nestle in Russia to focus resources on its well established core confectionery brands such as Kit Kat, Rossiya-Schedraya Dusha and Nestle," Stefan De Loecker, CEO of Nestle Russia, said.

Corminus is run by Igor Kubanov, who worked at Nestle between 2007 and 2008. Kubanov joined Nestle when the world's largest food maker acquired Russian cereal firm Bystrov, where he was general manager.