Nestlé sells brand of juices to Byrnwood Partners

Nestlé Juicy juice brand sold Juice to the private equity firm Byrnwood Partners. This is the latest move by the company in Switzerland to dispose of less profitable business.
The companies did not provide details of the agreement, but the Byrnwood said it was its largest acquisition in 30 years. According to a source close to the purchase, the Byrnwood paid less than $ 200 million for Juicy Juice, considering any debt.
Pioneer in natural juice segment, the Juicy has faced drop in sales in recent years, influenced by concerns regarding drinks with sugar for children. Last month, Nestle reported that market share fell from 4.6% from Juicy in 2011 to 3.9% this year.
Annual sales of the brand, about $ 275 million, also are smaller than the $ 500 million recorded for seven years, said Henk Hartong, Brynwood's Senior Manager.
"But you can have a huge success in a declining brand to be flexible and agile, considering the taste of consumers," said Hartong.
"Five years ago the Juicy Juice was a big deal, but it was generating more money," said the President of Nestlé in the United States, Paul Grimwood, in an interview last month.
Nestlé 's current strategy is to focus on businesses with better performance. Recently the company disposed of some of its smaller divisions, such as the business of PowerBar sports nutrition and dietary supplements Jenny Craig.
Nestlé also disbanded his 10% stake in the manufacturer of flavors and fragrances Givaudan. Source: Dow Jones Newswires.