Nestle has decided to exit the dairy sector in Ecuador by striking a deal with the Latin American food company Grupo Gloria.
As part of the agreement, Nestlé will divest a factory and distribution center situated in Cayambe, to the north of the capital city, Quito.
Grupo Gloria is set to acquire the indigenous brands La Vaquita, Yogu Yogu, Natura, Cereavena, and Huesitos in the region.
The deal also includes the licensing of additional international brands such as La Lechera and Svelty.
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The deal is contingent upon approval from Ecuador’s competition watchdog.
Nestlé revealed in February its intention to shut down a dairy facility in Nicaragua, citing “current global dynamics for efficient and productive operations” as the reason.
Josué De la Maza, the executive president of Nestlé’s operations in Ecuador, affirmed that the company would maintain its presence in sectors such as culinary products, confectionery, coffee, and infant formula.
He added, “It should be noted that in 2018 we acquired Terrafertil, an Ecuadorian company that has grown throughout Latin America with a leading portfolio in the plant-based category, which strengthens our product offering to Ecuadorian consumers. We are confident that Gloria Foods will continue to develop the dairy business in Ecuador based on its regional trajectory.”
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Peru-based Grupo Gloria operates in various countries, including Ecuador, Bolivia, Colombia, Argentina, and Puerto Rico.
“With this purchase, we renew our commitment to the Ecuadorian market as a relevant player in the food sector and we enthusiastically welcome the excellent workforce and the important brands that the acquisition of the operation brings with it,” Gloria Foods president Claudio Rodríguez said.
“We are sure that this transaction will strengthen our portfolio in Latin America and will allow us to continue bringing our quality and experience to the countries where we are present.”
In 2022, Grupo Gloria acquired a set of dairy assets in Chile from Fonterra, the New Zealand-based dairy giant.