Nestle Considering Selling Nature's Bounty, Other Vitamin Brands

 Nestle said it might sell Nature's Bounty and other brands in its vitamins business, as part of Chief Executive Laurent Freixe's efforts to boost sales growth at the world's largest packaged-food maker.

The Swiss consumer-goods giant said Thursday that it was launching a review of underperforming brands in its vitamins, minerals and supplements unit that might result in a sale, as it seeks to steer the business toward premium products.

Nestle bought Nature's Bounty, Osteo Bi-Flex, Puritan's Pride in a $5.75 billion deal for the main brands of vitamin maker Bountiful Co. in 2021. At the time, the acquisition marked one of the biggest moves in the company's push into the nutritional-supplements market under Freixe's predecessor, Mark Schneider.

Freixe, who replaced Schneider at the helm last year, has pledged to pump more investment into advertising and marketing to generate demand and revive sales growth, as well as to address issues at laggard units within the group's portfolio.

Consumer-goods groups in the U.S. and Europe are looking to reshape their portfolios at a time President Trump's tariffs have heightened caution among shoppers, who were already feeling stretched after steep price increases in the postpandemic years.

Reckitt Benckiser last week agreed to sell a majority stake in the business that houses Air Wick air fresheners and Cillit Bang cleaning products, Kenvue earlier this month said it would consider steps to simplify its portfolio, and Tide detergent maker Procter & Gamble in June said it would trim its brand lineup.

Nestle had flagged in recent updates that some of the brands within its vitamins, minerals and supplements were facing challenges. The strategic review will focus on underperforming mainstream and value brands and U.S. private label, it said.

The company also said it was taking steps to improve its performance in the region that includes China, Taiwan and Hong Kong, including changes in leadership. Its business there grew in recent years by expanding distribution, but that model has become challenged by a weaker consumer and a deflationary environment, it said.

Nestle reported organic sales growth of 3% for the second quarter, with higher prices offsetting declining volumes, and confirmed its full-year expectations.

For the first half as a whole, sales came in at 44.23 billion Swiss francs ($55.81 billion), up 2.9% on an organic basis. Net profit fell 10% to 5.065 billion francs.

https://www.morningstar.com/news/dow-jones/202507242305/nestle-says-it-might-sell-natures-bounty-other-vitamin-brands-update