Natura Sells Avon International to Regent as Brazilian Companies Restructure for Growth
Natura's sale of Avon and other strategic shifts among Brazilian companies highlight a trend towards focused growth.
Key Points
- • Natura sells Avon International to Regent for $1 billion.
- • Bold Foods aims to boost sales to half a billion reais by expanding product offerings.
- • McKesson restructures to focus on high-margin pharmaceuticals.
Natura & Co, the Brazilian cosmetics giant, has confirmed its agreement to sell Avon International to Regent for $1 billion. This strategic move is designed to enhance Natura’s focus on its core brands in Latin America while providing Avon with new resources to expand. The deal is expected to close by the end of 2025, subject to customary conditions. Natura CEO, Fábio Barbosa, stated, "This agreement allows us to optimize our portfolio and dedicate our resources toward scaling our leading brands," highlighting a clear shift toward more focused operations.
Meanwhile, Bold Foods, a Brazilian snack company, is ramping up its product offerings significantly, aiming to increase sales to half a billion reais by 2026. The company's strategy includes diversifying its product line, investing heavily in new snacks, and expanding distribution channels. CEO Marco Garcia reported that Bold plans to introduce 25 new products in the coming year to capitalize on growing snack demand in Brazil.
On another front, McKesson, a major pharmaceutical distributor, is restructuring its operations to concentrate on higher-margin segments. The company aims to drive profitability by focusing on specialty pharmaceuticals and other services that yield better margins, in a move reflecting the broader trend among Brazilian companies to optimize business structures for enhanced performance.
Together, these developments underscore a significant strategic pivot among leading Brazilian firms as they seek to streamline operations and pursue profitable growth in a competitive market.