Nestlé sells remaining Herta stake to Casa Tarradellas as portfolio review gathers pace
The move comes as the company reviews its portfolio and days after it announced a precautionary infant formula recall in the UK.
SPAIN – Nestlé has sold its remaining 40 percent holding in the Herta charcuterie business to Casa Tarradellas, ending a partnership that has been in place since 2019.
The Swiss food group said that Casa Tarradellas has taken full ownership of the business, although it did not disclose the financial terms of the transaction.
The partnership was created six years ago when Nestlé sold a 60 percent stake in Herta to the Barcelona-based company while retaining a minority interest.
Alongside cured meat products sold across Europe, the joint venture also covered Herta’s dough operations in France and Belgium.
At the time the agreement was signed, the combined Herta charcuterie and dough activities reported annual sales of about US$785.4 million, based on figures from the previous year.
Nestlé does not separately report revenue for joint ventures, and its most recent annual report did not include sales data for Herta, Casa Tarradellas or its Spanish operations.
Even so, the company maintains a significant footprint in Spain, where it operates 10 factories producing items ranging from prepared foods and confectionery to pet food, dairy products, water, and beverages.
Portfolio review and job cuts
The disposal comes as Nestlé chief executive Philipp Navratil, who took the role in September, is carrying out a review of the group’s business lines.
In an October presentation, Navratil said each unit would be assessed on growth prospects, returns, competitive positioning and performance, with outcomes including restructuring, partnerships or divestments.
During the same briefing, he announced plans to cut 16,000 jobs worldwide over the next two years, affecting 12,000 office-based roles and 4,000 positions in manufacturing and supply chain functions.
Navratil also said Nestlé would continue to focus on six strategic priority areas set by his predecessor while addressing market share declines and tightening investment decisions.
Infant formula recall
The strategic changes come shortly after Nestlé confirmed a precautionary recall of certain baby formula products in the United Kingdom due to possible contamination with cereulide.
The company said specific batches of SMA infant formula and SMA follow-on formula should not be fed to babies, adding that no illnesses have been confirmed.
Cereulide is a toxin linked to some strains of Bacillus cereus bacteria and can cause symptoms including vomiting, nausea and abdominal pain.
The UK Food Standards Agency warned that the toxin is resistant to heat and cannot be eliminated through boiling or standard formula preparation.
Nestlé said the issue was traced to an ingredient supplied by an external provider and stressed that other products and unaffected batches remain safe.
The company apologised to consumers, offered refunds, and said batch details were available through its website and the Food Standards Agency.
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