Nestle to Assess Vitamins Division's Performance Due to H1 Organic Sales Exceeding Projected Estimates
Nestlé Announces Strategic Review of Vitamins, Minerals, and Supplements Business
Nestlé, the global food and beverage giant, has announced a strategic review of its vitamins, minerals, and supplements (VMS) business. The company is focusing on its mainstream and value brands, with potential divestment of key brands such as Nature's Bounty, Osteo Bi-Flex, Puritan's Pride, and its US private label offerings.
The review comes as Nestlé shifts its focus towards premium brands like Solgar, Garden of Life, and Pure Encapsulations. This move is part of CEO Laurent Freixe's strategy to streamline the portfolio and accelerate growth, despite a strong 2.9% organic sales growth in the first half of 2025.
Freixe, who took over the helm a year ago, is prioritizing portfolio optimization by addressing underperforming assets to improve profitability. The strategic review signals Nestlé's intention to refine its health science division, shedding brands that do not meet performance or growth expectations, particularly in the increasingly competitive and shifting consumer preferences landscape for vitamins.
The decision to review the VMS business follows Nestlé’s $5.75 billion acquisition of these assets in 2021, indicating a reconsideration of that investment. This strategic move comes amid concerns about Nestlé's corporate governance model, which has been a topic of discussion in the past.
Despite the strategic review, Nestlé maintains its 2025 outlook, expecting organic sales growth to improve. The company's share price has risen around 4% this year, a positive sign for investors. However, it's worth noting that Nestlé's share price has lagged rivals like Unilever and Danone since Freixe's appointment in August last year.
In other news, Nestlé recently announced that Chairman Paul Bulcke would step down. The decision followed rising investor unease over the tenure of Freixe's predecessor. Despite the changes, Nestlé remains a dominant player in the global food and beverage industry, with popular brands such as KitKat chocolate bars, Nespresso coffee, and Maggi seasoning.
[1] Nestlé Revenue Drops Due to Foreign Exchange Impact (source) [2] Nestlé to Focus on Premium Brands in VMS Business (source) [3] Nestlé Announces Strategic Review of Vitamins Business (source) [4] Nestlé's CEO Laurent Freixe Takes Steps to Address Underperforming Business Cells (source) [5] Nestlé's Organic Sales Growth Exceeds Expectations in First Half of 2025 (source)
[1] The strategic review of Nestlé's vitamins, minerals, and supplements business could potentially have a significant impact on the health-and-wellness industry's finance and business landscape.
[2] Nestlé's decision to refine its health science division and prioritize growth through its premium brands demonstrates the intersection of science and business in the food and beverage giant's strategy.
