(Bloomberg) -- Nestlé SA is cutting ties with a coffee creamer brand that is used in a fifth of all cups of instant coffee drunk in South Africa.
The Swiss food group said its sold Cremora to Groupe Lactalis of France for an undisclosed amount after a review of its local product range, which also includes Nescafé, Ricoffy, Maggi, Nespray and Kit Kat.
Disposing of Cremora, which has been sold in South Africa for almost 80 years, will allow Nestlé to focus investment in other products that can deliver better value.
Cremora has faced a fierce price battle with local rival Ellis Brown. The 750 gram pack of creamer made by AVI Ltd. is sold in many grocery stores for 64.99 rand ($3.63), exactly the same price as the equal size box of Cremora. Although creamers are generally considered by Nestlé as core products, its coffee creamer business in the US has also struggled.
Nestlé recently replaced its Chief Executive Officer Mark Schneider with Laurent Freixe, an abrupt move that raised concerns about the extent of Nestle’s problems after it repeatedly missed quarterly sales expectations.
--With assistance from Dasha Afanasieva.
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