Vevey, Switzerland-headquartered Nestlé has decided to sell a 60% stake of Herta to Casa Tarradellas. The two companies will thereafter create a joint venture for Herta with their respective stakes of 40% and 60%.
The joint venture includes Herta charcuterie (cold cuts and meat-based products) available in six European countries, as well as the Herta dough business in France and Belgium. It will be established upon finalization of employee consultations where required.
Nestlé will retain and develop the existing Herta vegetarian business, in line with its increased focus on plant-based offerings. The multinational giant offers a wide range of plant-based products around the world, including through the Garden Gourmet brand in Europe and the Sweet Earth label in the United States.
The Herta charcuterie and dough business generated sales of EUR 667 million in 2018 and has been valued at EUR 690 million. Finalization of the deal is anticipated to take place in the first half of 2020.
The joint venture is intended to build on the brand’s significant presence and leadership position in several European countries, as the alliance is expected to benefit from the complementary strengths and innovation expertise of both parties in order to continue the successful development of Herta in the EU.
Marco Settembri, Nestlé’s executive vice president and chief executive officer for Zone Europe, Middle East and North Africa, stated: “The Herta business has delivered strong performance over the past years and is well positioned for future growth. We are happy to have Casa Tarradellas as our partner, a family-run business that is a market leader in Spain for pizza, fresh dough and charcuterie. Both companies have a true passion for quality and innovation and are proud to be in a joint venture to provide our consumers with great ingredients for their daily meals.”
The new enterprise will be incorporated in Spain. Operations will continue to be managed by the existing local Herta businesses in France, Germany, Belgium (also covering Luxembourg) and the United Kingdom (also covering Ireland).
The deal will ensure the continuity of production sites and the current structure of the business, including its employees, according to a statement issued by Nestlé.
About Casa Tarradellas
Founded in 1976, Casa Tarradellas is a Spanish family-run organization. It ranks among the leading food companies and is one of the Top 10 best-known brands in Spain. Casa Tarradellas is a leader in all categories it compete in: refrigerated and frozen pizza, fresh dough, sandwiches, espetec (cured sausage), sliced meat and pâté. The company employed more than 2,000 people and recorded sales of EUR 936 million in 2018.