Under the agreement, Nestlé will license its Ninho and Molico brands, exclusively for the liquid milk segment in Brazil, to Laticínio Bela Vista, for a period of 10 years.
The aim of the partnership is for the Piracanjuba brand owners to accelerate the expansion of the UHT segment in the country and position Nestlé's two brands as leaders in the category as well.
Marcelo Melchior, president of Nestlé Brazil, said, “This is the beginning of a partnership between companies that have a strong presence in Brazilian homes and that have the trust of consumers. We believe we have found the ideal partner to leverage our brands in the UHT milk segment.”
Under the agreement, Laticínio Bela Vista will take over the Nestlé units that produce UHT milk, utilizing the lines already installed and absorbing most of the employees at Três Rios (RJ) and Araraquara (SP) and part of the factory in Carazinho (RS).
Cesar Helou, superintendent of Laticínio Bela Vista, said one of the key points throughout the negotiation between companies was the maintenance of jobs.
“We consider that people are essential to expand the presence of Ninho and Molico brands in the country, and to provide the service that both consumers and the trade deserve,” he said.
“We admired Nestlé for a long time and were very happy and honored with this partnership. It is a company that inspires us to be better every day, striving for excellence in products and services, with great respect for consumers, employees and society. We have a lot to grow together.”
Terms of the agreement will be submitted to the Administrative Council for Economic Defense (CADE), and it is estimated that the deal will take effect by the end of the year.
In Brazil, Nestlé installed its first factory in 1921, in the city of Araras, for the production of the condensed milk Milkmaid, which would later be known as Milk Girl. The company has industrial units in the states of Sao Paulo, Minas Gerais, Bahia, Pernambuco, Goiás, Rio de Janeiro, Rio Grande do Sul and Espirito Santo.
It employs more than 30,000 and generates another 200,000 indirect jobs, which collaborate in the manufacture, marketing and distribution of more than 1,000 items. Nestlé is present in 99% of Brazilian homes, according to a survey by Kantar Worldpanel.
Laticínio Bela Vista has a portfolio of more than 140 products, distributed under the Piracanjuba, Pirakids, LeitBom, ChocoBom, MeuBom and Viva Bem brands, in addition to partnering with Blue Diamond, the world's largest almond producer, with the beverage Almond Breeze.
The company has four manufacturing units, in Bela Vista de Goiás (GO), Governador Valadares (MG), Maravilha (SC) and Sulina (PR). Together, the factories have the capacity to process more than 5m liters of milk per day. The company is one of the four largest in the Brazilian dairy industry.