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Nestlé has launched a strategic review of its vitamins, minerals and supplements segment, which may lead to the divestment of several underperforming brands, including Nature’s Bounty and Puritan’s Pride.

This news, first reported by Bloomberg, comes as the Swiss food giant reported better-than-expected organic sales growth for the first half of 2025, indicating a proactive approach to enhance profitability within its portfolio.

The review reflects Nestlé's commitment to addressing challenges in its vitamins business, which has faced increasing competition and shifting consumer preferences.

CEO Laurent Freixe noted that the company is focusing on optimising its offerings by potentially shedding mainstream and value brands that do not meet performance expectations. This move is part of Freixe's efforts to refocus the company on its core divisions, including pet care, coffee and nutrition.

The review reflects Nestlé's commitment to addressing challenges in its vitamins business, which has faced increasing competition and shifting consumer preferences. Freixe noted that the company is focusing on optimising its offerings by potentially shedding mainstream and value brands that do not meet performance expectations.

In conjunction with the announcement of the review, Nestlé reported a 2.9% increase in organic sales for the first half of the year, slightly above analysts' average forecast of 2.8%. However, total reported sales decreased by 1.8% to 44.2 billion Swiss francs ($55.8 billion), falling short of expectations due to a significant negative impact from foreign exchange fluctuations.

Despite these challenges, Nestlé maintained its financial outlook for 2025, forecasting improved organic sales growth and an underlying trading operating profit margin at or above 16%. The company’s recent price increases, averaging 2.7%, were higher than analyst estimates, suggesting that Nestlé is effectively managing pricing strategies to offset volume pressures.

Freixe has stated that the strategic review could result in the sale of brands acquired during the tenure of former CEO Mark Schneider, who had expanded into new product categories including health supplements. Some analysts have noted that this review should have started earlier, as the brands could be valued at a few hundred million dollars.

Additionally, Nestlé's performance has been impacted by weak consumer demand and rising raw material costs. The group has raised prices to counter falling sales volumes, with real internal growth (sales volume growth) reported at -0.4% as consumers reacted negatively to higher prices.