Disposal

RNS Number:2880A
Nestle SA
30 June 2004

                   Nestle to Sell Cocoa Processing Activities
                      in York and Hamburg to Cargill Inc.



Vevey, June 30, 2004  -  Pursuant to the Company's policy to concentrate its
activities on branded value-added products, Nestle has reached an agreement by
which the Group will sell its cocoa bean processing activities in York (UK) and
in Hamburg (Germany) to Cargill Incorporated. Nestle expects the definitive
agreements to be signed in early July 2004 and for the divestiture of the
activities in York and Hamburg to take effect on October 1st, 2004, after
completing work council consultations. As part of the agreement, Cargill will
also take over the personnel dedicated to these activities.


As a result of this transaction Nestle will enter into a long-term agreement
with Cargill for the sup-ply of cocoa products to certain of its European
confectionery businesses. Cargill is a major cocoa supplier in Europe from its
facilities in the Netherlands, France and the Ivory Coast. Nestle and Cargill
have a long-lasting relationship and Cargill supplies Nestle globally with a
range of ingre-dients such as vegetable oils and speciality starches. The
transaction is subject to regulatory ap-proval.


The Nestle Group's policy consists in leveraging its extensive R&D investments,
its knowledge and its expertise by concentrating on high value-added consumer
products. First stage transformation of cocoa beans is today becoming an
increasingly commodity-focused operation with economies of scale as important as
the technologies used. It is in this context that in recent years similar
divesti-tures have been made in Italy, Malaysia, the Netherlands, the United
States, Brazil and Mexico.


These latest divestments form an integral part of Nestle's long-term
transformation strategy, lead-ing to Nestle becoming the foremost food,
beverage, nutrition, health and wellness company and they will have no impact on
the turnover of the Group.








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