Nestlé mulls divestment of Skin Health division

By Simon Pitman contact

- Last updated on GMT

Nestlé mulls divestment of Skin Health division
The Switzerland-based food and beverage giant has announced that as part of its strategic focus on wellness, it is considering the option to divest its Skin Health division.

The Nestlé board of directors has confirmed that as part of its overall strategic focus on nutrition, health and wellness, it will reassess the viability of its skin care operations to determine how it sits in its brand portfolio as a whole.

In a press release, the board confirmed that it has been continuing to deepen resources commitment to accelerate the longer-term value creation strategy for these key areas, concluding that skin care now appears to be outside of its own strategic scope and resources.

Nestlé Skin Health and the future

Going to the next level in the decision-making process, the board has established that the operations of the existing Nestlé Skin Health division will be carefully assessed to determine the best strategic options, with the aim of making a full review of the situation by mid-2019.

The company already offers a range of medical and consumer brands that touch on skin health through three existing complementary business units, that include Epiduo and Soolantra, representing the prescription area, as well as Restylane and Azzalure in aesthetics and Cetaphil and Proactiv in the consumer care area.

A possible divestment of the Skin Health business would be no small consideration as the operation currently includes 5,000 employees across 40 different countries.

Research and development resources

The Skin Health business also includes an extensive research and development resources spread across the globe that help contribute to division sales that totaled CHF 2.7 billion in 2017.

"Nestlé Skin Health has made significant progress under its new leadership team over the past two years,”​ said Mark Schneider, CEO.

“The company has developed convincing growth strategies for each of its business units and regained a competitive cost structure. Now is the right time to explore the best ownership structure for Nestlé Skin Health and to consider ways of taking it to the next level."

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