Mergers, Acquisitions and Takeovers Case Study

Nestlé’s Acquisition of Jenny Craig: Health Conscious Effort?

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Abstract:
Nestle, the world’s largest chocolate and food manufacturer announced in 2006, its purchase of Jenny Craig, a weight-loss management company based in California, US. The term ‘Obesity’ and ‘Weight-Loss’ were literal oxymorons and how could a company like Nestle combine these two in its business? ask analysts. Industry observers were highly cynical about Nestlé’s move into weight-loss business, since its traditional business of high-fat and sugary food manufacturing totally contravened with its new venture. This case details the possible assumptions that would have prompted Nestle to enter into this new business stream.

Pedagogical Objectives:

• To understand the weight loss industry in US
• To understand the problems of Nestle
• To understand Nestle’s turnaround plans.

Keywords : Mergers,Acquisitions,Alliances Case Study;Nestle; US Food and Dairy Industry; Weight Loss Industry; Jenny Craig; Product Portfolio; Nestle's Acquisition of Jenny Craig; Fair Trade Movement; Child Slavery in Business; Business Portfolio; Diet/Health Foods; FMCG; Inorganic Growth Strategy; Mergers and Acquisitions

Contents : 
US Weight Loss Industry: Growing to Slim
USWeight Loss Market Segments and Size
Are Happy Days Ending for Nestle?
Nestle: Encouraging Child Slavery?
Is Nestle EnteringWeight-Loss to Show its Good Face?
Testimonials from Jenny Customers
Major Milestones of Nestle
Nestlé: Balancing Obesity andWeight-Loss