Nestlé buys majority stake in organic food company Terrafertil
Nestlé has bought a majority stake in Terrafertil, a South American company that sells natural and organic plant-based food.
The investment is the latest step by Nestlé to shift its portfolio towards healthy food offerings to offset declining sales in the packaged foods sector.
Nestlé did not disclose the financial sum of the investment or how big a stake it was taking in the company.
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Founded in 2005, Terafertil is an Ecuadorian company that sells natural and mostly organic products. It is also the world’s largest buyer of goldenberries (Physalis), an Andean superfood.
As part of its growing interest in the healthy foods market, Nestlé spent US$2.3bn on the Canadian vitamin maker Atribum Innovations in December.
It also announced deals for Sweet Earth vegetarian foods and Blue Bottle coffee last September.
Speaking of its latest investment Laurent Freixe, CEO of Nestlé Zone Americas said, "We are excited to welcome Terrafertil and its employees to the Nestlé family. Its natural, organic and healthy products fully support Nestlé’s purpose to enhance the quality of life and contribute to a healthier future.
He added: “This investment allows us to strengthen our presence in fast-growing categories such as plant-based foods, beverages and healthy snacks, known as ‘superfoods’ due to their high natural nutrient content.”