According to a recent report by Reuters – Nestlé SA, ‘the world’s largest food company’, is considering the sale of its PowerBar sports nutrition business. The Reuters report notes that the reports of a planned sale are based on ‘four people familiar with the matter.’
PowerBar is a major sports nutrition player in Europe and internationally. While its actual sales figures are typically hidden within Nestlé’s publicly issued financials, it reportedly generates around US$175 million in annual revenue.
PowerBar sits within the Nestlé Nutrition division, which in 2012 generated sales of CHF 7.9 billion (US$8.7 billion). The main activity of Nestlé Nutrition is in the area of infant nutrition – and this continues as an area of scale and focus for the Swiss based multinational.
(The November 2012, US$11.85 billion, acquisition of infant nutrition specialist Wyeth Nutrition (Pfizer Nutrition), helped forge Nestlé’s leadership in the global infant nutrition market.)
Nestlé has declined to comment on the Reuters reports of a planned sale of PowerBar. If this is being considered, the sale could generate ‘several hundred million dollars’. As noted by Reuters, Nestlé bought PowerBar in 2000 for an undisclosed amount, with media reports at the time putting the acquisition price in the region of US$375 million.
PowerBar remains a key player within the endurance sport category – and triathlon in particular.
In April 2013, it was confirmed that Ironman has become PowerBar’s second largest European sponsorship commitment after the Tour de France.
Meanwhile, in February 2013, Competitor Group Inc (CGI) announced a global sponsorship agreement with PowerBar. The deal saw the leading international sports nutrition brand and energy bar pioneer on board with three of Competitor Group’s endurance sport event series. The agreement named PowerBar as:
- Official energy bar of the 32-event Rock ‘n’ Roll Marathon Series; and
- Official bar and energy gel of the REI Muddy Buddy Adventure Series, TriRock Triathlon Series and the endurance LIVE awards gala.
