Nestle SA (NSRGY) - Get Report announced a strategic plan to focus more on high-growth businesses including bottled water, coffee, infant nutrition and pet care days after activist investor Daniel Loeb took a 1.25% stake in the company, the Wall Street Journal reported.
The world's largest packaged food producer made no mention of investing in its core prepared food sector, which includes Lean Cuisine, DiGiorno pizza and European processed meat brand Herta. Analysts think the decision could suggest divestiture over time.
Nestle CEO Mark Schneider earlier this month announced plans to sell the company's confectionery business. It's also selling three of its frozen food brands in Italy.
"Nestle's frozen foods, ice cream and pizza business are areas for possible disposals," Vontobel Research Analyst Jean-Philippe Bertschy said.
Nestle stock closed slightly down Wednesday.
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