Nestlé Munches up yogurt brands

UK – Nestle UK, part of the Swiss multinational, is to buy the Ski and Munch Bunch yogurt brands from Northern Foods for £145 million (237.7 million euro).

Northern’s yogurt production plant in Cheshire will be included in the deal. Eden Vale, which is part of Northern, will continue to manufacture desserts under the Mars brand at its Shropshire plant. Munch Bunch will move from Shropshire to Cheshire.

The move is part of Nestle UK’s plans to concentrate on chilled dairy, milks, nutrition, beverages and confectionary. Nestle claims that the move places it number two in the UK desserts market behind Muller.

The sale is subject to employee consultation and is expected to complete in early April. Northern will use the cash raised to reduce its group borrowings.

Peter Blackburn, who retired as chairman and chief executive of Nestlĩ last year, has just replaced Lord Haskins as chairman of Northern.

Lord Haskins was also due to retire as chairman of Express Dairies, but is thought to be staying on until a sale of the company is agreed.