Confectionery firm Darrell Lea has announced the purchase of the Life Savers brand from the Australian arm of multinational consumer goods giant Nestle for an undisclosed sum.
The agreement will see Darrell Lea, which is owned by Quadrant Private Equity, acquire rights to the Life Savers brand in Australia and New Zealand. Darrell Lea will then move its confectionery manufacturing operation from New Zealand to Australia, with the production line to be rolled out at its Sydney facilities.
As part of the deal, Darrell Lea will also acquire the Black Knight, Heards, Fabulicious, Odd Fellows and Mackintosh’s brands via its New Zealand sister company RJ’s.
Darrell Lea CEO Tim York said: “As part of our business growth ambitions, we are in the market for great confectionery brands and Life Savers is certainly that. We believe there is significant growth potential for the Life Savers brand through new product innovation and gaining additional distribution in Australia and New Zealand”.
The divestment comes as Nestle continues to move away from confectionery products globally and refocus on higher-growth health & nutrition brands. This strategy included the sale of the firm’s US confectionery arm to Italian chocolate maker Ferrero, which was announced in January this year.
Source: Australian Food News / Retail World