Nestle is acquiring a controlling interest in Grupo CRM, a Brazilian company that specializes in high-end chocolate. Grupo CRM owns the Kopenhagen and Brasil Cacau brands, which have over 1,000 chocolate shops in Brazil and a growing online business, according to Nestle.
The Swiss food giant did not disclose the financial terms of the deal, which is expected to be completed in 2024. It is buying the stake from Advent International, a private equity firm. Brazil Journal reported on Wednesday that Nestle would pay around 3 billion reais ($602.78 million) for Grupo CRM, while Valor Economico said the price was 4.5 billion reais ($904.18 million).
Nestle said that Grupo CRM’s CEO Renata Moraes Vichi would stay in charge of the company and keep a minority stake.
The deal is part of Nestle’s strategy to grow its super-premium chocolate business, where it has a small presence with brands such as Baci from Italy. Nestle’s confectionary sales rose by 10.8% organically in the first half of 2023, excluding the effects of acquisitions and currency changes.
The company also increased its underlying trading operating profit margin by 0.7 percentage points to 14.5%.
Another Swiss chocolate maker, Lindt & Spruengli, has also been performing well lately, boosting its sales by 10.1% and its operating profit by 38% in the first six months of 2023.