Nestlé partners with Aldi to grow big in Germany

The confectionery giant Nestlé has a relatively weak market share in Germany. The company is desperately trying to make a mark on one of the prominent European markets. As a part of this initiative, Nestle plans to partner with Aldi to showcase its products in the Aldi supermarkets across the nation.

The chocolate division of the Nestlé Group, based in Vevey has been above average, in the past year. Yves Küng, CEO of the German Nestlé Coffee and Chocolate GmbH, confirmed to a German journal about the company’s plans to partner with Aldi.

As a part of the arrangement, Nestlé’s two brands- After Eight and Smarties Minis –would be sold in selected stores of the discounter. The tests were designed to collect empirical data that would now be analyzed.

Nestlé is the third largest confectionery company in the world. The Group assimilated total sales of 6.7 billion Swiss francs with sweets in September alone. In Germany it has a market share of the approximately 1 billion Euros. The company finds these figures disappointing and institutes a way to increase revenues by partnering with the largest discounter in the country.

Previously Nestlé had a different strategy. They focused on the brands KitKat, Smarties, After Eight and Choco Crossies. Sales stagnated with the mint-chocolate until September.   The bottom line was a sales increase of 6.2 percent. The market grew by 4.8 percent.