Nestlé Brazil still resisting sale of Garoto

CADE,the Brazilian trade regulation authority, has again requested Nestlé to sell Chocolates Garoto.The world concern however is doing everything in its power to avoid having to lose the company. A merger of Nestlé and Garoto – two of Brazil’s three biggest chocolate manufactures – would result in a market share of between 75 % and 90 %. Nestlé’s offer to sell off other chocolate brands and operations in Brazil was turned down. Nestlé spokesman Perroud explained that Nestlé would consider the CADE request and try and find an acceptable solution. Perroud said Garoto was of special strategic significance to Nestlé. Garoto was acquired by Nestlé in 2002 for the sum of US$ 220m.