Nestle, Nutri/System strike deal for Sweet Success
Nestle USA, Inc. (Glendale, CA) and nutrisystem.com inc. (Horsham, PA) have announced that nutrisystem.com has acquired Nestle's Sweet Success diet meal replacement product line in exchange for 900,000 shares of nutrisystem.com common stock. The shares represent a 3% Nestle ownership stake in nutrisystem.com.
The Sweet Success product line, which includes a ready-to-drink weight loss shake, powdered mix and snack bars, generated over $14 million in sales in the first half of 2000. nutrisystem.com, which launched its online community in October of 1999, reported sales of $11 million in the first half of 2000.
"The diet meal replacement category grew at a 31% annual rate from 1996 to 1999, and Sweet Success is a well recognized and trusted brand in that market," said Brian Haveson, chief executive officer of nutrisystem.com. "We are very excited to be able to offer our target consumer another effective dieting and weight maintenance alternative under the Nutri/System brand name."
"Sweet Success is an excellent complement to the nutrisystem.com on-line weight loss program. We will continue to distribute the Sweet Success product solely through mass market retailers, but will create the kind of on-line support, interaction and information for Sweet Success customers that have proven so successful for the members of the nutrisystem.com community. We will give Sweet Success an on-line presence, and Sweet Success gives the Nutri/System brand a presence in the 'bricks' retailing environment," Haveson continued.
Through its highly interactive Website, www.nutrisystem.com, nutrisystem.com provides members with a weight management program that incorporates personal on-line counseling, individual diet and exercise plans, a weekly newsletter and on-line support groups, chat rooms and bulletin boards. There are no membership fees and the program features nutrisystem's convenient, portion-controlled meals delivered directly to the member's home or office.
Nestle's well-known brands include: Nestle Toll House, Nestle NesQuik, Carnation Coffee-mate, Stouffer's, Lean Cuisine, Nescafe, Libby's, Juicy Juice, Buitoni, Taster's Choice, Ortega, PowerBar, Nestle Crunch, Butterfinger, Wonka, Friskies Fancy Feast, ALPOand Mighty Dog. Nestle USA has $8 billion in sales and is part of Swiss-based Nestle S.A. -- the world's largest food company.
For more info: Laurie MacDonald, Nestle USA, 818-549-6235.
Edited by Judy Rice