Nestlé has announced another step forward in the implementation of its comprehensive value creation model. Early in 2017, the company’s management, together with the Nestlé board of directors, initiated a comprehensive review of the company’s capital structure and priorities to support and enhance its ability to deliver on its value creation model.
As a result of this review, Nestlé has determined that capital spending will be focused particularly on advancing high-growth food and beverage categories such as coffee, petcare, infant nutrition, and bottled water, as well as expanding its presence in high-growth geographic markets. In line with the company’s nutrition, health, and wellness strategy, it will also pursue growth opportunities in consumer healthcare. Consistent with a disciplined approach to acquisitions, Nestlé will only prioritize external growth opportunities that fit within targeted categories and geographies, deliver attractive returns, and build on the company’s leadership position in fast growing food and beverage categories.
Nestlé’s recent announcement that it would explore strategic options for its U.S. confectionery business is consistent with this overall approach. The company will continue to adjust its portfolio in line with its strategy and growth objectives.