Nestlé: 310 million in Brazil, following the sale of the supplements business and the spin-off of the mineral water business

Close on the heels of the sale of the business unit VMS – supplements, vitamins and minerals -, Nestlé opens yet another chapter and invests in the largest South American country.

In Brazil (over 214 million inhabitants, with an average age of around 35 years and approximately 60 million minors), the Swiss group has invested, in recent days, 310 million Swiss francs, roughly equivalent to 330 million euros, to increase its presence in the nutrition and health segment.

Nestlé renews South American baby food

After all, the interest in increasingly scientific nutrition is the common thread guiding all the multinational's disposals and innovations, and which prompted the sale of the so-called ‘Holistic Health’ portfolio, as reported at the beginning, as well as, in July 2026, of a 50% stake in mineral water portfolio, through the creation of the newco Peranel.

In Brazil the investment includes a new production facility to be built in Ituiutaba, in Minas Gerais, a state located on the Atlantic coast, which will expand production capacity for infant nutrition, creating approximately 100 new jobs.

Part of the overall sum will be invested by the food giant (89,5 billion Swiss francs in revenue in 2025 and 43,1 in the first half of 2026) to improve existing assets, strengthening the supply processes for certain key ingredients, such as whey.

The focus is on infant nutrition. Brazil is a young nation, with an average age of approximately 35 years

A country worth 4 billion francs

Brazil Brazil is in fact Nestlé's third-largest market, immediately after the US and China, with a turnover equivalent to 4 billion Swiss francs and expected to rise further, thanks to a comprehensive industrial and financial plan.

In particular, the Ituiutaba facility will receive 94 million CHF (100 million euros) to increase, specifically, the production of infant formula for both the local market and export to other countries.

The expanded investment plan also includes upgrading the factory for nutritional and health products located in the state of São Paulo, in Araçatuba: this is the main Brazilian facility for the baby food and wellness product categories.

In this way, total local whey production will be increased by 15% by 2029.

“Nutrition is one of Nestlé's key categories globally and today accounts for approximately 20% of our Group sales,” adds Jeff Hamilton, Nestlé CEO for the Americas “Brazil is a strategic market for this sector and will be well supplied with quality, science-based products.”

Timeline: in Minas Gerais, actual operations will begin in the second quarter of 2028. The facility will be Nestlé's second, after the one in Araçatuba, of course, and will be equipped with particularly advanced digital and automation technologies.

Vitamins, supplements and minerals account for 1 billion dollars

Let's return to the beginning, namely vitamins, supplements and minerals. The business unit, considered expendable as the group moves towards products with greater scientific content, has been sold for a value of 1 billion dollars to private equity firm Yellow Wood Partners (based in Boston), which controls, for example, Dr. Scholl’s.

The transaction, which is expected to be completed by the first half of 2027, concerns 7 brands Nature’s Bounty, Osteo Bi-Flex, Ester-C, Gard, Nuun and Puritan’s Pride and Sisu.

The package also includes private-label dietary supplements and the related industrial and commercial activities, from production through to distribution.

In 2025 the value of this business unit—adding together various key countries such as the US, China and Canada—stood at 1,2 billion dollars (just over one billion euros).

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This article was translated from the original Italian version with the assistance of artificial intelligence. In case of discrepancies, please refer to the original Italian version.