Nestle reorganizes business in Africa, shuts Nairobi office

[Geza Ulole]

Nestle reorganizes business in Africa, shuts Nairobi office
By Fredrick Obura | Published Wed, May 30th 2018 at 09:39, Updated May 30th 2018 at 09:46 GMT +3

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NAIROBI, KENYA; Nestle has announced reorganization plan of its operations in Africa which is likely to affect workers in Nairobi regional office.

In a statement, the company said it plans to close its Equitorial Africa Region (EAR) office in Nairobi by end of July and redistribute the responsibilities between the head offices of the two other regions on the continent in Accra and Johannesburg.

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The EAR office in Nairobi covers twenty countries including Madagascar, Malawi, Mauritius, Republic of Congo, Rwanda, Seychelles, Somalia, Southern Sudan, Tanzania, Uganda, Zambia and Zimbabwe.

“We are announcing a reorganization in Sub-Saharan Africa. These changes will ensure our Sub-Saharan Africa business continues on a healthy growth path, delivering affordable nutrition to as wide a population as possible,’ said the company in a statement on its website.

“Our team in EAR has done a tremendous job, but after trying for nearly ten years we can no longer sustain the cost of the regional head office with the size of the business there.”

“We understand this is unsettling for those employees affected. We will strive to minimize the impact of the changes, holding consultations with them to achieve this. We are very grateful for their contribution to the growth of our business in Sub-Saharan Africa and will do our utmost to give them strong support through this process.”

The company said that effective August 1 2018, the Central West Africa Region (CWAR) will become a Key Market for the Group. Angola and the Democratic Republic of Congo, currently part of Equatorial Africa Region (EAR), will join CWAR.

Nestle will also expand the Southern African Region (ZAR) to include the Horn of Africa, Southern, Eastern and Island clusters of EAR. The new, enlarged region, headquartered in Johannesburg, will be renamed the Eastern and Southern African Region (ESAR).

Read more at: Nestle reorganizes business in Africa, shuts Nairobi office

 

[mwaswast]

To open in Dar sluum?? no I don't think so...
The EAR office in Nairobi covers twenty countries including Madagascar, Malawi, Mauritius, Republic of Congo, Rwanda, Seychelles, Somalia, Southern Sudan, Tanzania, Uganda, Zambia and Zimbabwe.

 

[kennedy0000]

Eastern Africa is full of strife and LDCs.
Among those countries, only Kenya has the numbers and the purchasing power to support a company like Nestle.
Too bad a regional hq designed to serve a market of nearly 300 million is only supported by Kenya's population.

Also, Nestle is admitting that they've been kicked out by competition. Think of any of their product and there is a rival product in Kenya doing better.

 

[Geza Ulole]

To open in Dar sluum?? no I don't think so...
The EAR office in Nairobi covers twenty countries including Madagascar, Malawi, Mauritius, Republic of Congo, Rwanda, Seychelles, Somalia, Southern Sudan, Tanzania, Uganda, Zambia and Zimbabwe.

DANONE BUYS REMAINING 60% STAKE IN BROOKSIDE DAIRY TANZANIA

Danone buys remaining 60% stake in Brookside Dairy Tanzania
Posted By: News Deskon: March 27, 2017In: Business, Dairy, Food, Industries, Mergers & Acquisitions
Email
Danone has agreed to acquire all of Brookside Dairy’s Tanzanian dairy business, less than three years after investing in a 40% stake.

The buyout will be completed through Brookside Holdings – the wholly owned subsidiary that acted as a vessel for the French company’s acquisition of a minority stake in 2014.

At the time, FoodBev reported that Brookside Dairy had annual revenues of €130 million and was East Africa’s leading dairy products group.

Tanzania’s competition commission confirmed: “The FCC has received a merger notification to the effect that Brookside Holdings intends to acquire 100% of the issued share capital in Brookside Dairy Tanzania. FCC is currently investigating the intended acquisition in line with the provisions of the FCA and the FCC procedure rules.”

After completion, Danone will own all of Brookside’s Tanzanian business and will continue as a minority partner in Kenya and Uganda.

The company is buying out the 60% stake owned by Africa’s influential Kenyatta family, which includes the current president of Kenya, Uhuru Kenyatta.

According to Business Daily Africa, the divestment “comes against the backdrop of lukewarm diplomatic relations between Kenya and its southern neighbour.

“The two countries have developed mutual suspicion arising from differences over Uganda’s decision to abandon a joint plan to build a multi-billion shilling crude oil pipeline through Kenya in favour of Tanzania, and Dar es Salaam’s refusal to ease its tough work permit regulations for Kenyans.”

Seemingly, Brookside Dairy, which was founded in Kenya in 1993, will consolidate and re-focus its operations in its home market.



Danone buys remaining 60% stake in Brookside Dairy Tanzania

 

[Kafrican]

Eastern Africa is full of strife and LDCs.
Among those countries, only Kenya has the numbers and the purchasing power to support a company like Nestle.
Too bad a regional hq designed to serve a market of nearly 300 million is only supported by Kenya's population.

Also, Nestle is admitting that they've been kicked out by competition. Think of any of their product and there is a rival product in Kenya doing better.

Just like Cocacola Africa is HQ'd in Nairobi but within EAC where we have a common tarriff its only Kenya that keeps them running..... We are lucky the havent moved to onother country bcause they sell so much locally, if it wasnt for that, they would have probably relocated to West or SA




MAY 30, 2018 / 1:48 PM / UPDATED 27 MINUTES AGO
Coca-Cola Co's Africa distributor to invest $100 mln in Kenya over next 5 years
Omar Mohammed
NAIROBI, May 30 (Reuters) - Coca-Cola Beverages Africa (CCBA), the continent’s largest soft drinks bottler, said on Wednesday it would invest $100 million in Kenya over the next five years to improve infrastructure and launch new products.
The company, which sells and distributes Coca-Cola Co products in Africa, plans to introduce 50 new products in Kenya to add to more than 130 existing ones in the country, local Managing Director Daryl Wilson said in an interview.
“As the middle class is (growing)... they are wanting more variety,” he said, adding the new offerings would include various sugar-free and flavoured water beverages.
“Kenyan tastes are growing, the need for new brands is growing,” he said.
This month, the company launched a 7 billion Kenyan Shilling ($69 million) new juice line at its Nairobi plant. It operates four bottling plants in Kenya.
CCBA’s distribution system includes 300 official distributors reaching across the country of 45 million people.
The company operates in a dozen sub-Saharan African countries including Ethiopia and South Africa.
Kenya is second in terms of profits to Ethiopia, Wilson said, where the company has plans to open at least four or five factories in the next five years.
While Kenya’s economy offers a conducive business environment, bad rural roads take a toll on vehicles distributing products, Wilson said.
Another challenge is electricity, where inconsistent availability of power in some of its plants has forced it to deploy generators, which are expensive.
Wilson urged the government to “look at opportunities to reduce (the cost of) electricity, because it’s a big component of ours.”

 

[NairobiWalker]

The problem is with Nestle. Let them get off their financial crisis but when they come back, I don't have to tell you where they'll base. You all know.

 

[Kafrican]

The problem is with Nestle. Let them get off their financial crisis but when they come back, I don't have to tell you where they'll base. You all know.

Also important to note is that they are closing down the regional administrative office. and moving to SA... the boss in SA will be calling the shots.... however, the nestle factory in Nairobi will still run and supply products to the region...the only difference now is that The nestle Kenya boss will be reporting to the boss in SA..... its like how vodaphone UK restructured and now every vodaphone subsidiery in Africa reports to Vodaphone SA
.

Also there is a posibility that Nestle is punishing us for refusing them from firing Kenyan staff in their Nairobi office and they were firced to continue paying workers who they dint want/need while they were already having financial problems





The company said the changes will not affect customers, trade and wholesale partners, and suppliers.
In 2015, Nestlé suffered a blow after a court suspended the layoff of 46 employees following their petition claiming it discriminated against them.
Justice Nduma Nderi restrained the firm from effecting a redundancy notice that was set to send the 46 senior and junior workers packing.

 

[mwaswast]

DANONE BUYS REMAINING 60% STAKE IN BROOKSIDE DAIRY TANZANIA

Danone buys remaining 60% stake in Brookside Dairy Tanzania
Posted By: News Deskon: March 27, 2017In: Business, Dairy, Food, Industries, Mergers & Acquisitions
Email
Danone has agreed to acquire all of Brookside Dairy’s Tanzanian dairy business, less than three years after investing in a 40% stake.

The buyout will be completed through Brookside Holdings – the wholly owned subsidiary that acted as a vessel for the French company’s acquisition of a minority stake in 2014.

At the time, FoodBev reported that Brookside Dairy had annual revenues of €130 million and was East Africa’s leading dairy products group.

Tanzania’s competition commission confirmed: “The FCC has received a merger notification to the effect that Brookside Holdings intends to acquire 100% of the issued share capital in Brookside Dairy Tanzania. FCC is currently investigating the intended acquisition in line with the provisions of the FCA and the FCC procedure rules.”

After completion, Danone will own all of Brookside’s Tanzanian business and will continue as a minority partner in Kenya and Uganda.

The company is buying out the 60% stake owned by Africa’s influential Kenyatta family, which includes the current president of Kenya, Uhuru Kenyatta.

According to Business Daily Africa, the divestment “comes against the backdrop of lukewarm diplomatic relations between Kenya and its southern neighbour.

“The two countries have developed mutual suspicion arising from differences over Uganda’s decision to abandon a joint plan to build a multi-billion shilling crude oil pipeline through Kenya in favour of Tanzania, and Dar es Salaam’s refusal to ease its tough work permit regulations for Kenyans.”

Seemingly, Brookside Dairy, which was founded in Kenya in 1993, will consolidate and re-focus its operations in its home market.



Danone buys remaining 60% stake in Brookside Dairy Tanzania

I don't care as long as Danone is not a Tanzanian Firm young man.

 

[Naby Keita]

Kwani ya huko ya wakenya

 

[Kafrican]

Kwani ya huko ya wakenya

Waliileta Kenya, sasa wameipeleka SA, Tanzania ikarukwa, kwahivyo huyo Geza asijifanye eti Kenya kuna shida..

 

[Lewis254]

Nestle to Cut 500 Jobs in Biggest Swiss

 

[Mwanzi1]

Is Unilever next? Just asking

 

[eliakeem]

Is Unilever next? Just asking

The English multinational company is also striving.