Nestle USA Exiting Direct-Store-Delivery Network for Pizza and Ice Cream
May 07 2019 - 2:06PM
Dow Jones News
By Josh Beckerman
Nestle USA will exit its company-owned frozen
direct-store-delivery network for pizza and ice cream, planning to
shift to a warehouse model starting in the third quarter.
The company will close eight distribution centers.
The Nestle SA (NESN.EB, NSRGY) unit said "leveraging a simpler
route to market unlocks resources we can use to fuel our efforts in
demand generation, such as product innovation and brand
building."
Nestle noted "unprecedented shifts in consumer behavior," while
its retail customers "also are evolving."
The transition is expected to be complete early in the second
quarter of 2020.
In February 2017, Kellogg Co. (K) said it would exit its
direct-store-delivery network for its U.S. snacks business,
reducing complexity and cost structure.
Write to Josh Beckerman at josh.beckerman@wsj.com
(END) Dow Jones Newswires
May 07, 2019 13:51 ET (17:51 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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