Nestlé believes the acquisition will strengthen its position in the growing premium chocolate segment in Brazil, one of the largest chocolate markets in the world.

“This acquisition further broadens our confectionery presence in Brazil, enabling us to enter the high-end segment,” says Laurent Freixe, CEO of Zone Latin America at Nestlé.

Grupo CRM will continue to be led by its current CEO, Renata Moraes Vichi, as a minority shareholder. 

“Kopenhagen and Brasil Cacau offer premium chocolates that are highly appreciated by Brazilian consumers. We are pleased that Renata Vichi will continue to lead the company with her deep knowledge and passion for the chocolate business, people and brands. Together, we will explore opportunities to further enhance the company’s unique premium chocolate experience.”

Data from Innova Market Insights indicates that Brazil is the fastest-growing chocolate market in the world, contributing to 34% of all chocolate confectionery NPD in 2022. Moreover, NPD grew at a CAGR of 24.4% between 2020 and 2022.

Of the top five countries for chocolate confectionery NPD in Latin America, only Chile outpaced Brazil’s growth, with a 56.9% CAGR in the same period. Furthermore, by value, Brazil supposes almost half of all the region’s sales value.

Opportunities in LATAM
Latin America is the third global market for chocolate NPD, with a 15% share – behind the 20% of Asia Pacific and 50% of Europe, data from 2022.

Moreover, by value, Latin America is just slightly behind the second market, accounting for one-fifth of all global confectionery sales. 

Nestlé believes the acquisition will strengthen its position in the growing premium chocolate segment in Brazil. (Image Credits: Nestlé).By subcategory, the most popular NPD between 2020 and 2022 were chocolate blocks (38%), followed by wrapped chocolate pieces (23%), unwrapped chocolate pieces (22%), other chocolate confectionery (11%) and chocolate bars (6%).

In Brazil, chocolate blocks (45.6%) and chocolate bars (8%) are more popular than the region’s average.

Nestlé capitalizes on its strengths
The Swiss business posted an 11.6% organic growth in its Zone Latin America segment during the first six months of the year, outpacing the general company growth.

“Zone Latin America recorded sustained strong growth across all geographies and product categories, supported by pricing, strong operational execution and continued momentum of out-of-home channels. The zone saw market share gains in pet food, Infant Nutrition and culinary,” the company explained.

“Brazil posted strong double-digit growth, with strong momentum for Garoto and KitKat as well as NAN and Mucilon infant cereals.” 

The company also noted that confectionery was the largest growth contributor. 

Nestlé also announced this week that it has divested from Palforzia, its peanut allergy business, to Stallergenes Greer, a biopharmaceutical company specializing in diagnosing and treating allergies.