Company Profiles

Can Nestlé sustain its leadership in the pet food market?

by October 30th, 2002

Mars and Nestlé have both undertaken major takeovers in the face of stagnating pet food sales in recent years, triggered by a shift in consumer demand towards premium and dry varieties, while the companies’ offerings were skewed towards wet and mid-priced products. The purchase by Nestlé of US dry pet food specialist Ralston Purina in 2001 was followed one year later by Mars with the takeover of French dry and super-premium pet food firm Royal Canin.

A Hershey Bar to the Winner

by July 29th, 2002

America’s largest confectionery company is up for sale and speculation is rife over which of its competitors might acquire it for an estimated US$10 billion. Nestlé, Kraft and Cadbury Schweppes have all been touted as potential suitors, with Mars almost definitely ruled out by anti-trust legislation. The move is likely to affect Pfizer’s sale of Adams, which might sell for less than the expected US$4 billion if there is less competition to purchase it, and might encourage Mars to acquire smaller confectionery interests to bolster its share of the US market.