Nestlé has decided to sell its Cipiripi confectionery brand to Paraćinka, a subsidiary of Serbian distributor Silco, for an undisclosed sum.
Cipiripi produces and markets a range of confectionery products for Serbian consumers, such as chocolate spreads, chocolate bars and ice cream.
The deal is subject to approval from Serbian authorities, and should be completed in the second quarter of 2018, according to a statement from Nestlé.
Nestlé claims that the divestment will allow the company to focus on its global confectionery brands in order to stimulate growth.
Yana Mikhailova, the managing director of Nestlé Adriatic said: “Cipiripi has a long and rich history, with over 27 years of presence in Serbia.
“In Paraćinka, a member of the Silbo distribution group, we have found an exceptional home for our Cipiripi confectionery brand, in which it will further progress.
“At the same time, this allows Nestlé to focus on its globally recognised confectionary brands Kit Kat, Lion, Smarties and After Eight, in which we plan a strong future growth.”
A statement from Paraćinka said that the acquisition will allow the company to develop the Cipiripi brands so that it can grow in the Southeast European market.
Dejan Simić, CEO of Paraćinka added: To our knowledge, this is the first instance of a strong legacy Serbian brand returning to local ownership.
“As a consequence, we will be able to create jobs, increase exports and further develop this important brand.”
© FoodBev Media Ltd 2018