Nestle to Sell Underperforming Units, CEO Says

John Revill

  ZURICH - Nestle SA (NESN.VX), the world's largest food company by sales, will

sell some of its underperforming units, its chief executive said Tuesday, as it

seeks to concentrate on its more successful brands.

  "We are going to have divestments," Paul Bulcke told an analyst conference at

the Swiss company's headquarters in Vevey.

  The company has conducted a review of around 97% of its business "cells",

giving Nestle--whose products include Nescafe coffee and Kit Kat chocolate

bars--an idea of which units are underperforming, said Chief Financial Officer

Wan Ling Martello said.

  Such a unit wouldn't be sold automatically, Ms. Martello added. Instead the

company would see if it could be improved and how long this process would take.

  Mr. Bulcke didn't mention specific brands nor say how many businesses could

be affected, though he said a shortlist had been drawn up of the companies to

be fixed, which was longer than the list of those to be sold.