Nestle(US:NSRGY) Xin Jing Bao·2025-12-03 09:43Core Viewpoint - Nestlé's Greater China region will establish a new nutrition business unit starting January 1, 2026, merging its infant nutrition business with Wyeth, aiming to enhance organizational efficiency and regain growth momentum in the competitive market [1][2]. Group 1: Business Merger Announcement - Nestlé confirmed the merger of its infant nutrition and Wyeth nutrition units on December 1, 2023, with the new unit set to launch in 2026 [2]. - The merger aims to combine the brand influence of Wyeth's products with Nestlé's industry and channel advantages for sustainable development in a competitive market [2][3]. - The integration will not disrupt existing operations, as Wyeth will continue to operate independently during the transition [2]. Group 2: Historical Context and Market Position - Wyeth has operated independently since its acquisition by Nestlé for $11.85 billion in 2012, which was intended to enhance Nestlé's infant nutrition portfolio [2][3]. - In 2019, Nestlé and Wyeth together held a 17% market share in China's infant formula market, making them the leading company at that time [3]. - The market dynamics have shifted due to declining birth rates and the rise of domestic brands, impacting Wyeth's sales and market position [4][5]. Group 3: Recent Performance and Market Trends - After a decline in sales from 2019 to 2021, Nestlé's infant nutrition business showed signs of recovery in 2022 and 2023, although it faced another downturn in 2024 [6][7]. - As of 2024, Nestlé and Wyeth's combined market share in China's infant formula market is approximately 9.3%, ranking them behind leading brands like Feihe and Danone [7]. - The merger is expected to consolidate their market presence and improve competitive strength amid a challenging environment characterized by high market concentration and strategic competition among brands [7].