Nestlé Sells Its New Zealand Honey Business, Egmont Honey

In a strategic move, Nestlé has sold its New Zealand-based honey business, Egmont Honey, to Beijing’s Huatai International Private Equity Fund after just two years of ownership. The decision to sell follows Nestlé’s acquisition of Egmont Honey as part of its purchase of The Better Health Company in 2022. Despite Egmont Honey's impressive growth over the past two years, Nestlé stated that the business no longer aligned with its long-term strategic goals.

Egmont Honey: A Global Leader in Manuka Honey

Founded in 2008, Egmont Honey has quickly grown to become one of the fastest-growing producers of Manuka honey globally. Specialising in ethically sourced, high-quality honey, the company has built a strong reputation and expanded its presence in more than 20 countries. With the growing global demand for Manuka honey, Egmont Honey’s expansion strategy has been focused on continuing growth in key international markets, particularly in China.

Nestlé’s decision to sell the business is part of the company’s broader approach to streamline its portfolio and focus on areas that align more closely with its overall strategy. Egmont Honey, under Nestlé’s ownership, has shown impressive growth but is now expected to benefit from a more focused effort under Huatai’s guidance.

Huatai International’s Role in Expansion

Nestlé’s decision to sell Egmont Honey to Huatai International is rooted in the belief that Huatai can further support the honey company’s expansion strategy, especially in China. The Chinese market has become an increasingly important focus for many global companies, and Huatai’s experience and connections in the region are expected to provide valuable support in expanding Egmont Honey’s footprint.

Huatai International is a Beijing-based private equity firm with a track record of facilitating business growth in China. With their backing, Egmont Honey is poised to deepen its presence in one of the world’s largest and fastest-growing markets for premium products like Manuka honey.

Financial Outlook for Egmont Honey

Egmont Honey is expected to generate approximately $54 million in revenue and $20.7 million in earnings for the year ending next March, making it a key player in the honey industry. While Nestlé no longer sees the business as a strategic fit within its portfolio, the sale allows the company to refocus on other opportunities.

The decision to sell Egmont Honey aligns with Nestlé’s broader strategy of optimizing its portfolio, focusing on businesses that complement its core operations and future growth plans. As the demand for ethical, sustainably sourced food products continues to rise, the sale of Egmont Honey allows Nestlé to sharpen its focus on its global food and beverage business while allowing Egmont Honey to continue its journey of global expansion under new ownership.

What’s Next for Egmont Honey?

With the backing of Huatai International, Egmont Honey is set to continue its trajectory of growth. The company’s commitment to ethical beekeeping and high-quality honey production has won over consumers worldwide, and this sale positions it for even greater success in the global marketplace.

As part of its new strategy, Egmont Honey will likely look to build on its established reputation and expand its market share in key regions. The move to a new ownership group, with access to additional resources and expertise, is expected to strengthen the company’s position in the competitive honey market.