Nestle kisses Cremora goodbye

Nestle has recently announced its decision to divest its Nestle Cremora business, a beloved creamer brand in South Africa for 77 years.

In 1993, Nestle South Africa took over Bordern, the makers of Cremora and Klim, from Borden Foods Corporation (Ohio).

Five years later, Nestle bought Borden and established the Babelegi factory. Babelegi is the only factory in Nestle South Africa.

The factory produces three different products on one site: cereal, noodles, and Cremora coffee creamer. By 2016, the Babelegi factory produced 130 tons of Cremora per day.

Cremora became a household name after a series of successful advertisements with the payoff line, “It’s not inside, it’s on top”.

The brand claims that one in five coffee drinkers in South Africa use Nestle Cremora as a creamer.

However, on 11 September 2024, Nestle East and Southern Africa Region (ESAR) announced it would sell its Nestle Cremora business to Lactalis South Africa.

It said this decision was based on the region’s economic development and evolving its business model to stay competitive and sustainable.

The company believes divesting from the Cremora business would help it focus on other regional brands.

Nestle Cremora is manufactured in South Africa across two facilities located in South Africa, Babelegi and Potchefstroom.

Its distribution spans the East and Southern Africa region, excluding countries in the East and Horn of Africa.

“This decision will impact operations in Harare, where production of Cremora will cease, and focus will shift to brands such as Nestle Everyday and Nestle Cerevita,” it said.

“This strategic realignment will ensure the Harare facility remains integral to Nestle’s efforts to drive future investments and sustainable development within Zimbabwe.”

The new owner, Lactalis, is a 90-year-old French multinational dairy products corporation owned by the Besnier family.

In South Africa, Lactalis company is home to brands such as Président, Parmalat, Melrose, Steri Stumpie, and Bonnita.

Lactalis South Africa has operations in the Western Cape, Eastern Cape, Gauteng, and KwaZulu Natal.

Nestle’s head of external communications, Mota Mota, said this decision was reached after considering various factors and was not taken lightly.

“We believe that Cremora is in good hands with Lactalis SA, a leading food company known for its expertise and commitment to excellence,” he said.

Lactalis SA’s General Manager, Herman Janse van Rensburg, said they were excited to welcome Cremora to their stable.

“This move aligns with our innovation strategy and diversification of our product offering to cater to local consumer preferences,” he said.