Vevey, Switzerland — Nestlé SA is rumored to be considering selling off its PowerBar brand at an asking price of several hundred million dollars, according to four individuals familiar with the matter who asked to remain anonymous, Reuters reports.
Nestlé has declined comment.
The company bought the sports nutrition brand in 2000 for an undisclosed price, which some media outlets reported as $375 million. Although the Performance Nutrition segment contributed to of Nestlé’s Nutrition Division’s 2012 sales of $7.9 million and 6.7 percent organic growth, the company’s 2013 half-year results showed lower-than-anticipated profits overall, and it said it was lowering its annual sales goals and reviewing the performance of its 8,000 brands.
Nutrition bars represent a $6 billion market in the U.S., according to research by Virginia Dare Extract Co., Inc., with estimated annual sales growth projected at 6.4 percent. Increasing numbers of competitive products reportedly are eroding PowerBar’s market share.