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Nestlé has revealed plans to sell its Cremora business in South Africa to dairy giant Lactalis.

Cremora is a popular creamer brand that has been present in South Africa for more than 70 years and is currently manufactured at Nestlé’s plants in Babelegi and Potchefstroom, South Africa. Both sites will be acquired by Lactalis as part of the deal.

Cremora is also produced at Nestlé’s plant in Harare, Zimbabwe – the facility will cease to manufacture the brand once the transaction is complete. The plant will turn its focus to producing the Everyday and Cerevita lines of creamers and breakfast cereal. Nestlé says that this strategic realignment will “ensure the Harare facility remains an integral part of Nestlé’s efforts to drive future investments and sustainable development within Zimbabwe”.

In South Africa, Lactalis produces various trusted brands such as Président, Parmalat, Melrose and Bonnita; with operations in the Western Cape, Eastern Cape, Gauteng and KwaZulu Natal.

It's been a busy week for Lactalis. The news follows yesterday's announcement that food giant General Mills is divesting its North American yogurt operations to Lactalis and Sodiaal, two French dairy firms, in a move valued at approximately $2.1 billion.

Nestlé’s head of external communications, Mota Mota, said: "This decision was reached after considering various factors and was not taken lightly. We believe that Cremora is in good hands with Lactalis SA – a leading food company known for its expertise and commitment to excellence. This transition is in the best interests of our business, employees, customers, partners and consumers, ensuring that Cremora continues to thrive and deliver quality products under new ownership.”

Mota continued: “As we embark on this transition period, the welfare of our employees remains a top priority, with assurances that job security, remuneration and benefits will remain unaffected. We express our heartfelt gratitude to our dedicated workforce for their hard work and commitment in building Nestlé Cremora into the household name it is today.”

Lactalis SA’s general manager, Herman Janse van Rensburg, added: “We are excited to welcome this iconic brand to Lactalis South Africa. This move aligns with our strategy of innovation and diversification of our product offering to cater to local consumer preferences. Furthermore, we look forward to welcoming our new colleagues to the Lactalis SA family as we continue to build on the rich heritage of Cremora together to ensure seamless continuity for customers and consumers.”

The transaction is subject to regulatory approvals. Financial terms were not disclosed.

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