Nestlé has sold its Russian confectionery division, Altai Confectionery, in a reported bid to focus on its core brands, according to media reports. Private company Corminus Enterprises, which is headed by former Nestlé executive Igor Kubanov, is reported to have acquired the business from Nestlé for an undisclosed sum. The transaction is expected to be closed in the second quarter of 2011. Stefan De Loecker, CEO of Nestlé Russia said that "The sale of this company will allow Nestlé in Russia to focus resources on its well established core confectionery brands such as Kit Kat, Rossiya-Schedraya Dusha and Nestlé" .

Nestlé had acquired Konditerskaya Firma Altai in 1998. The plant, which produces confectionery under brands including Altai and Savinov, made around 17,000 tonnes of confectionery products in 2009.

Nestlé has built up a strong presence in Russia over the past 15 years. The Swiss group operates 13 production facilities in the country, and has 10 sales offices and around 10,000 employees. In August last year, Nestlé announced plans to upgrade its premium chocolate manufacturing facility in the Samara region of Russia, which will transform it into a key competence centre for confectionery products in Europe.

Meanwhile in the UK, Nestlé completed the first part of its £15m three year investment programme last month at its Kit Kat factory in York. The company has spent £5m on the first stage of the project. Once it is finished, the factory will be fitted with further new and upgraded ovens that manufacture the wafers for Kit Kat.