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Nestle Acquires Brazilian Health Food Brand
Event
Swedish brand, Nestle, acquired a Brazilian health focused brand. Puravia is a Brazilian nutrition brand that makes protein powders, bars, and other healthy snacks. The exact amount of the deal was not disclosed; however, these seems to be a trend for the Nestle company. They have acquired multiple health conscience brands in the last few years, so protein powders, electrolyte drinks, health bars, etc, might be the next big rebranding for Nestle. Puravia is known for its online presence, and according to the article, they sold about 60% of their products in their online store. This "business-to-consumer e-commerce channel" could something that Nestle could apply to their other stocks.
Analysis
It seems that this is on brand for Nestle at the moment. The health food craze is not going anywhere, and it seems like Nestle is going to try and jump into the game with their recent acquisitions. I think that they are a great company to do this, and I see it being a success. Many of the companies seemed to mention protein shakes or drinks of some kind, which Nestle is well known for beverages, and I could see these types of items being improved with the experience in the pre-packaged beverage industry, that Nestle has.
Implications
It seems that Nestle is expanding their brand, and they are moving into the health food space. This is a vastly and quickly growing market, and it makes a lot of sense that a big brand like Nestle would start to acquire many brands in this market. Not only does Puravia bring another feather in Nestle’s cap in this no market, but they are also acquiring a great and proven e-commerce channel that will help them increase profit on their Puravia investment but is also a great tool they can utilize to sell their other products.