Swiss food conglomerate Nestle said Monday it had acquired a majority stake in Turkish confectionery brands Dogan and Balaban Gida as it seeks to expand in the low-income segment of the market. Nestle did not disclose financial details concerning the acquisition of a 51 percent stake, which it said was part of its strategy to expand its offering of products specifically created for lower income consumers.
"Nestle will partner with Dogan and Balaban Gida, national producers of popular biscuit, chocolate and wafer brands, to create more affordable products for shoppers at the bottom of the pricing pyramid," the company said in a statement. Nestle estimated that in Turkey this segment accounted for half of the total confectionery sector, valued at around 3.6 billion Turkish lira (1.8 billion euros, 2.3 billion dollars) per year.
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