Subject: Proposal for Acquisition of the KitKat Brand
Dear Members of the Board of Nestlé SA
We, The Sprezzatura Company, based in Zurich, Switzerland, hereby submit our formal proposal to acquire the iconic KitKat brand from Nestlé S.A. This proposal reflects our sincere interest in exploring the opportunity to add KitKat to our portfolio of brands and to continue its legacy of success.
As a company committed to sustainability and innovation, we believe that there is significant potential to enhance the environmental impact of the KitKat brand. We recognize the importance of addressing the carbon footprint associated with the production of KitKat, particularly in relation to the use of dairy milk.
It is estimated that the production of 5 billion KitKats annually, approximately requiring 25 million kilograms of animal-based milk, results in approximately 50 million kilograms of CO2 emissions. Recognizing this environmental impact, we are confident that by leveraging advancements in animal-freetechnologies, we can achieve the same product quality while transitioning to animal-free milk substitutes. Not only would this approach contribute to a healthier product offering, but it would also significantly reduce the carbon footprint associated with KitKat production.
To provide context, 50 million kilograms of CO2 emissions are equivalent to the annual emissions from approximately 20,000 passenger cars. By implementing sustainable practices in KitKat production, we have the opportunity to make a meaningful contribution to reducing greenhouse gas emissions, mitigating climate change and improving animal welfare.
1. Offer Details:
• Offer Price: USD 1.5bn (One Billion Five Hundred Million)
• Offer Expiration Date: June 30, 2024
2. Financing:
• We acknowledge that the financing for this acquisition is still in progress and far from being secured. However, we firmly believe that by raising public awareness of our strategic plan, we will attract the necessary investors and funds to support this endeavour. Our team is committed to actively engaging with potential investors and stakeholders to ensure the successful completion of this acquisition.
3. Strategic Rationale:
• The KitKat brand holds a special place in the hearts of consumers worldwide, with its distinctive taste, heritage, and global presence.
• Acquiring KitKat aligns with our strategic objectives to expand our presence in the confectionery market and strengthen our brand portfolio.
• We are committed to preserving and enhancing the integrity of the KitKat brand, maintaining its high-quality standards, and leveraging synergies to drive growth and innovation.
4. Governance and Integration:
• We are dedicated to conducting the acquisition process with the utmost professionalism, transparency, and respect for Nestlé's stakeholders.
• Our integration approach prioritizes collaboration, communication, and the retention of key talent to ensure a seamless transition and maximize value creation.
5. Next Steps:
• We respectfully request the opportunity to engage in further discussions with Nestlé's management and board of directors to address any questions, concerns, or additional information requirements related to this proposal.
• We are prepared to work diligently to finalize a mutually beneficial agreement in a timely manner, subject to necessary due diligence and regulatory approvals.
If you need any further modifications or have any questions, please feel free to let me know.
Sincerely,
Fabio Matticoli