Nestlé stakes claim in CHF 2.4 bio Turkish confectionery sector

Nestlé continues to expand its business in emerging markets after agreeing to purchase a majority 51% stake in Turkish confectionery brands Dogan and Balaban Gida.

DOGAN AND BALABAN GIDA BRANDS: Dogan and Balaban Gida produce a variety of biscuit, chocolate and wafer brands.

The agreement, subject to regulatory approval, marks the Company’s latest drive to grow its Popularly Positioned Products (PPPs) business, specifically created for lower income consumers.

In Turkey, this segment is considered to be worth half of the total confectionery sector, valued at around TL 3.6 bio (CHF 2.4 bio).

Nestlé will partner with Dogan and Balaban Gida, national producers of popular biscuit, chocolate and wafer brands, to create more affordable products for shoppers at the bottom of the pricing pyramid.

Devrim Cobek, Business Executive Manager of Nestlé Turkey’s Confectionery Business Unit, commented on the new partnership. He said: “We aim to offer consumers great taste and Nestlé quality through popular price points. Our objective is to gain new production capabilities, and the collaboration with Dogan and Balaban Gida will make an important contribution to this.”

Lutfu Balaban, General Manager of Dogan and Balaban Gida agreed that the partnership constituted a new beginning for the company.

Available in smaller or ‘daily-portion’ packs to be bought on a regular basis, Nestlé’s PPPs are manufactured from local raw materials to minimise value chain costs.