Nestle, the world’s largest packaged food group has announced that it's looking to make further divestments in a number of underperforming food brands and instead invest in more scientific businesses in the medical nutrition and skin health arena.
Nestle’s chief executive, Paul Bulcke said that the new businesses would require greater investment and resources than food due to its complex nature, Reuters reports.
"If you really go into the dimension of science … the promise is big but the pre-investment is a little heavier than reformulating a bouillon cube," said Bulcke.
"We don't allow ourselves to have laggards because we don't have the luxury anymore because we are investing for the future," he said.
The new businesses are looking to include the likes of injectable wrinkle treatments as the company recently purchased the rights to several injectable wrinkle treatments for US$1.4bn.
Nestle recently sold its PowerBar business as well as the bulk of its Jenny Craig business, stating that further divestments of other underperforming brands could also take place.
"We are living in a riskier place and going riskier places strategically, like Nestle Health Sciences. That equals more margin," Bulcke said. "To get higher margins, you have to take out that which is dragging you down."