Nestle-Purina unite, eliminate duplication
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Karen S. Kim
GLENDALE -- A new pet-food giant -- born when corporate parents,
Nestle S.A. and Ralston Purina Co., formalized a $10.3-billion union --
could bring product and staff changes to both its parent companies.
Nestle S.A. is the Swiss corporation that heads Glendale-based Nestle
USA.
“Any time you combine two businesses, you will have some duplication
and overlap,” said Keith Schopp, spokesman for the new Nestle Purina
PetCare Co.
Schopp added that duplication would be eliminated and changes would be
made.
Whether those changes will include layoffs or product discontinuation
is not yet known, said Nestle USA spokeswoman Kimberly Constant.
“It’s really too soon to answer that question,” Constant said. “We’re
just now starting to evaluate the business, so that won’t be decided for
quite some time.”
Nestle S.A. acquired Ralston Purina following approval Dec. 11 by the
U.S. Federal Trade Commission, an antitrust enforcer.
As part of the acquisition, Nestle and Ralston Purina were ordered to
sell Meow Mix and Alley Cat dry cat food to Hartz Mountain Corp. by the
Federal Trade Commission.
Without the promise, Meow Mix would have given Nestle nearly a 45%
share of the dry cat food market, the commission said.
Nestle entered the pet food business in 1985 when it acquired Friskies
during its purchase of Carnation.
The new Nestle Purina PetCare Co. employs 15,000 people worldwide and
includes brands such as Friskies, ALPO, Fancy Feast and Purina.