Nestlé Buys Stake in Turkish Confectioner
January 7, 2011
Nestlé Turkey has emphasized its interest in price-conscious consumers by agreeing to purchase a 51% stake in Dogan-Balaban Gida.
The acquisition of the Turkish chocolate and confectionery maker marks Nestlé’s latest attempt to improve its Popularly Positioned Products (PPPs) business, which markets lower-priced items to consumers.
Nestlé and Dogan-Balaban Gida plan to create more products for this sector, which accounts for half of the total market share in Turkey, valued at around TRY 3.6 billion ($2.3 billion), reports Reuters.
“We aim to offer consumers great taste and Nestlé quality through popular price points,” says Devrim Cobek, business executive manager of Nestlé Turkey’s Confectionery Business Unit. “Our objective is to gain new production capabilities, and the collaboration with Dogan-Balaban Gida will make an important contribution to this.”
Dogan and Balaban Gida currently produce popular biscuits and chocolate and wafer brands in Turkey.
For more information, visit www.nestle.com