Nestle is in talks to buy Canadian pet food manufacturer Champion Petfoods for $2bn (£1.5bn) in order to expand its manufacturing portfolio.
Champion Petcare currently makes premium pet food brands Orijen and Acana and is owned by Toronto based conglomerate Bedford Capital. The company sells its products in speciality pet shops in the US and Canada as well as internationally through its distributors.
Investor Dan Loeb is said to be piling on pressure on Nestle bosses to fix the company’s overall corporate strategy. Loeb has accused Nestle of a “muddled strategic approach” in a letter to the company which was made public last Sunday, in which he called Nestle “complacent” and “lethargic”
Loeb also accused the food giant of missing “too many trends” in the wake of independent pet food manufacturers gaining the majority of market share, due to consumer desire for organic, independently produced pet food. Despite pressure from Loeb, Nestle says it is still on track to meet its goals for 2020.