VEVEY, SWITZERLAND — Nestle S.A. has agreed to acquire a 51% stake in Turkish chocolate and confectionery makers Dogan and Balaban Gida. Financial terms were not disclosed.
Nestle said the acquisition is expected to drive the company’s Popularly Positioned Products business, which is geared specifically for lower income consumers. According to Nestle, the lower-priced confectionery goods segment is worth about 3.6 billion lira ($2.3 billion), or about half of the total confectionery goods market in Turkey.
“We aim to offer consumers great taste and Nestle quality through popular price points,” said Devrim Cobek, business executive manager of Nestle Turkey’s confectionery business unit. “Our objective is to gain new production capabilities, and the collaboration with Dogan and Balaban Gida will make an important contribution to this.”