UPDATE: Nestle Rolls Out American Weight Management In Europe
08 Marzo 2010 - 9:47AM
Noticias Dow Jones
Swiss food and beverage company Nestle S.A. (NESN.VX) is rolling
out American-Style weight management in Europe, launching its Jenny
Craig program in France and setting its sights on the U.K. and
other European markets later this year.
The world's largest food maker by sales is targeting France as
the launch site site in part because of the high and rising level
of obesity there. The move reflects the global and spreading health
issues associated with obesity, too.
"We chose France to launch Jenny Craig in Europe as research has
shown that French men and women are adopting a lifestyle that is
increasingly American--fast foods, soft drinks and little or no
exercise--they may be entering the front end of the obesity and
diabetes epidemics that began in America nearly 20 years ago," a
Nestle spokesman said.
The Swiss group's move comes as major food producers round the
world try to persuade increasingly savvy consumers of health
benefits associated with their products.
Nestle, while selling processed products, confectionery and ice
cream, also extols the health benefits of its baby and even pet
foods.
Health claims for food products have generated billions of euros
in revenue for European food companies including Nestle and
France's Danone S.A. (BN.FR).
Taking the Jenny Craig concept of diet-coaching and associated
products to Europe represents a new and potentially lucrative area
of business. The global weight watching market is already estimated
to be worth around $55 billion.
"When Nestle bought the business back in 2006, its original idea
was to launch it internationally, and that's what is happening
now," said Bank Vontobel analyst Rene Weber.
Nestle said it plans to introduce the scheme in the U.K. later
in 2010 and is also looking at other European markets.
Jenny Craig, alongside its competitors, offers meals at its
centers and provides counseling services on nutrition, exercise and
eating behavior. The California-based company has a global total of
725 weigh loss centers and 4,000 staff. Its main markets are the
U.S., Australia and Canada.
Nestle competes against Weight Watchers International Inc. (WTW)
and NutriSystem Inc. (NTRI).
Industry leader Weight Watchers, which saw its revenue fall to
$1.39 billion in 2009 from $1.54 billion in 2008, said it expects
this year to remain challenging. NutriSystem's sales fell to $527.7
million in 2009 from $687.7 million for 2008.
Nestle doesn't break down sales along unit lines. The group
bought Jenny Craig in 2006, paying around $600 million for a
company with $400 million in annual sales and double-digit growth
rates.
France may be a good test market for the concept because Nestle
has strong Nutrition operations there, said Weber, who maintains a
buy rating on Nestle and a CHF60 share price target.
On the Swiss bourse at 1515 GMT, Nestle shares traded CHF0.10,
or 0.2%, lower at CHF52.80, in a slightly lower general market.
Company Web site: http://www.nestle.com
-By Martin Gelnar, Dow Jones Newswires; +41 43 443 8042;
martin.gelnar@dowjones.com (William Horobin contributed to the
story.)
Nutrisystem (NASDAQ:NTRI)
Gráfica de Acción Histórica
De Jun 2024 a Jul 2024
Nutrisystem (NASDAQ:NTRI)
Gráfica de Acción Histórica
De Jul 2023 a Jul 2024
