Sector News

Nestle scales back Africa workforce

June 17, 2015
Food & Drink
(Reuters) – Swiss food and drinks company Nestle NESN.VX is cutting 15 percent of its workforce in 21 African countries, the company confirmed on Wednesday.
 
A Nestle spokesman told Reuters the job cuts would affect about 60 workers in the equatorial Africa region after the Financial Times reported that the company is pulling back because it overestimated growth in the middle classes.
 
“We thought this would be the next Asia, but we have realized the middle class here in the region is extremely small and it is not really growing,” Cornel Krummenacher, chief executive for Nestle’s equatorial Africa region, told the newspaper.
 
Nestle has about 11,000 employees in the whole of Africa, the spokesman said, with the equatorial Africa region encompassing 21 countries including Kenya and Angola.
 
Krummenacher also said in the FT that Nestle would be lucky to reach annual growth of 10 percent in the equatorial Africa region in future years and, with the job cuts, hopes to break even next year.
 
($1 = 198.8000 naira)
 
(Reporting by Ankush Sharma in Bengaluru and Joshua Franklin; Editing by David Goodman)

comments closed

Related News

October 23, 2021

Coca-Cola announces 100% plant-based bottle prototype for commercial testing

Food & Drink

Coca-Cola is unveiling a fully plant-based PET (bPET) bottle prototype, excluding the cap and label. The beverage giant has produced a limited run of 900 bottles, confirming the prototypes are recyclable within existing recycling infrastructures, alongside PET from oil-based sources.

October 23, 2021

McDonald’s and Starbucks increase investment in reusable packaging and fiber-based recyclability

Food & Drink

McDonald’s and Starbucks are committing an additional US$10 million to the NextGen Consortium, an initiative aiming to improve environmental sustainability standards in the foodservice industry. Founded by investment firm Closed Loop Partners, the Consortium is investigating methods of advancing the design, commercialization and recovery of packaging materials.

October 23, 2021

Hortifrut’s US$280M acquisition of Atlantic Blue bolsters European position

Food & Drink

Hortifrut is purchasing Atlantic Blue for US$280 million. Atlantic Blue is a key player in the growing and marketing of berries in Europe and Northern Africa, based in Huelva, Spain. The transaction will allow Hortifrut to expand its growing area by about 20% and consolidate its position as the largest fresh blueberry platform in Europe and the UK.

Send this to a friend