Nestlé Completes Strategic Divestiture with Full Exit from Herta

Nestlé has finalized its complete withdrawal from the processed meats sector. The Swiss food and beverage conglomerate sold its remaining 40% stake in Herta Foods to its Spanish partner, Casa Tarradellas. This transaction concludes a joint venture established in 2019 and underscores the company's ongoing strategic pivot toward health, wellness, and plant-based product categories.

In a December 23 interview with Finanz und Wirtschaft, CEO Philipp Navratil outlined the company's current strategic priorities. He confirmed that assessments of the water and vitamin businesses are actively underway. Navratil acknowledged the complexity of separating these units but emphasized the goal to "finalize these deals as quickly as possible." Proceeds are intended to help reduce debt and restore annual free cash flow to 10 billion Swiss francs.

Regarding Nestlé's significant holding in French cosmetics giant L'Oréal, Navratil described it as a "financial investment" that undergoes regular review, while signaling no immediate plans for a sale. He expressed particular optimism for the pet care and coffee segments, where he sees "incredible opportunities" for continued expansion.

A Broader Transformation Agenda

This divestment is a logical step in a wider corporate overhaul. Processed meat products like sausages no longer align with the profile of a company focused on wellness-conscious nutrition. While financial terms of the Herta sale were not disclosed, the move is part of an accelerated wave of divestitures under CEO Navratil's leadership.

Should investors sell immediately? Or is it worth buying Nestle?

Navratil initiated a comprehensive portfolio review in October 2025. Since then, Nestlé has been systematically exiting non-core businesses that contribute little to its targeted organic growth rate of 4%.

The company is navigating one of the most profound restructuring phases in its history. In October 2025, it announced plans to eliminate 16,000 positions globally—approximately 6% of its workforce—by the end of 2027. This restructuring aims to generate savings of 3 billion Swiss francs, which will subsequently be reinvested into growth initiatives.

Executive Turmoil and Future Targets

The top leadership has experienced recent turbulence. Navratil assumed the CEO role in September 2025 following the dismissal of his predecessor, Laurent Freixe, after just one year. Shortly thereafter, Board Chairman Paul Bulcke also stepped down.

Looking ahead, Nestlé anticipates achieving an operating margin of at least 16% for 2025. Its medium-term goals are organic growth exceeding 4% and a margin above 17%. The next quarterly results are scheduled for February 2026, by which time further details regarding the planned disposals in the water and vitamin divisions, and potentially concerning the Blue Bottle Coffee chain, are expected to emerge.