Will Garoto close? Will the Serenade of Love end? See the fate of the chocolate factory in ES after approval of the acquisition by Nestlé

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After 21 years of stalemate, the process of buying Garoto by Nestlé was finalized, with an agreement containing a series of commitments to preserve competition in the domestic market. Garoto factory in Vila Velha Press Release/Garoto The Administrative Council for Economic Defense (Cade) approved, on Wednesday (7), the conclusion of the acquisition of Chocolates Garoto by Nestlé, after 21 years of impasse. The agreement is conditioned to a series of “behavioral remedies” to preserve competition in the national chocolate market. As a result, doubts arose about the future of the company of Espírito Santo origin located in Vila Velha, in Greater Vitória: the traditional Serenata de Amor will Will the factory close? Will new products be launched? Share on WhatsApp Share on Telegram Cade explained that this term “behavioral remedies” corresponds to measures related to the company’s internal activity, such as, for example, obligations to do and not to do. That is, some conditions for the approval of the acquisition of Garoto by Nestlé. Among them are that Nestlé cannot acquire, for a period of five years, assets that represent, cumulatively, a participation equal to or greater than 5% of the market. applies to international acquisitions. 📲 Join the g1 ES community on WhatsApp and receive our news Another clause provided for in the agreement obliges Nestlé to communicate to Cade, for a period of seven years, any acquisition of assets that characterizes an act of concentration in the national chocolate market, below the 5% level. Other norms interfere with the functioning and future of the Garoto factory, in Vila Velha. See below how Cade’s decision impacts Garoto. Will Garoto’s factory in Espírito Santo close? No. One of the requirements imposed in Cade’s agreement prohibits the sale of Garoto’s factory, located in the Glória district, in Vila Velha. Nestlé never expressed an interest in closing the Capixaba factory, neither at the beginning nor during the board approval process. The process also determines that the unit be maintained in full operation with investments for a minimum period of seven years. Will Garoto receive new investments in Espírito Santo? Garoto Factory, in Vila Velha, in Greater Vitória Garoto Sim. In addition to operating for at least another seven years, Nestlé has already stated that it will make new investments in the Vila Velha unit. In recent years, the factory has undergone modernization and, in May 2023, the company announced an investment of BRL 430 million to expand the unit’s capacity. Work on modernizing the unit, installing new production lines and expanding the product portfolio will begin in the coming weeks and will be completed next year. Will Serenade of Love end? Serenata de Amor is manufactured by Chocolates Garoto Manoela Albuquerque / G1 ES No. Cade and Nestlé even signed an agreement, in 2017, which provided for the sale of a package of ten brands such as Serenata de Amor, Chokito, Lollo and Sensação. The company, however, did not fulfill the commitment and the brands were not sold. In this Wednesday’s decision (7), the council did not establish restrictions on the topic. With this, the continuity of these traditional brands of the companies was preserved. Will Garoto create new products at the ES factory? Yes. In addition to maintaining the current products in its portfolio, such as the Serenata, the company is planning new products. Among the innovations is the start of manufacturing a new line of chocolate bars at the Espírito Santo plant. Had Garoto not already been bought? Yes. The purchase took place in February 2002, a period in which Cade’s judgments took place after negotiations were closed by the companies. Two years later, the council vetoed the operation, based on the allegation that signing the contract would result in a concentration of more than 58% at the time. A law that came into effect in 2012 changed this way of analyzing Cade. From then on, a prior analysis of concentration acts in the country became necessary. Videos: all about Espírito Santo See the latest news from g1 Espírito Santo

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