Nielsen Split Expected to Bring Stronger Retailer Collaboration
Grocery retailers and CPG manufacturers can expect “a new climate of strength and stability” in information gathering with Nielsen’s spin-off of its Global Connect business.
Following a strategic review, the New York-based consumer information provider announced plans to split its operations into two independent, publicly traded companies – Global Connect and Global Media – each of which is expected to have sharper strategic focus and greater opportunity to leverage its competitive advantages.
By making Global Connect an independent company, Nielsen officials said, the company can increase focus and velocity on key initiatives such as its Nielsen Connect Platform and retailer collaboration that have strengthened its competitive position.
"Nielsen Connect remains the only truly global truth set between manufacturers and retailers, and we are better positioned than ever to help our clients grow, evidenced by the momentum we’ve achieved with our products, analytics and insights,” said John Tavolieri, chief product and technology officer for Nielsen Global Connect. “With a spotlight on our Nielsen Connect platform, our tech-driven transformation is well underway. We are shaping a smarter market for the rapidly evolving world of global commerce."
David Kenny, CEO of Nielsen, called the move “a milestone in Nielsen’s strategic evolution.” As separate companies, Kenny explained, the entities “will strengthen their path forward towards a new phase of growth, productivity and industry leadership. The new Nielsen Connect will be built upon our existing foundation of providing the data and insights that shape markets in the rapidly evolving world of commerce, a world that is increasingly reliant on technology.”
Meanwhile, Nielsen Global Media will remain a standalone public company “with a resolute focus on being the One Media Truth,” Kenny said. “It’s a new day for Nielsen and we’re excited to unlock the value of two strong, global franchises.”
According to Nielsen, creating separate companies will enable faster decision-making, allocation strategies aligned with growth plans and strategic flexibility to invest in growth opportunities; and create compelling pure-play investment opportunities for investors by driving accelerated growth and profits.
The strategic review was led by James Attwood, chairman of Nielsen's board of directors. "As independent companies, both Nielsen the Global Media business, and the new company consisting of Global Connect, will enjoy added flexibility and further strengthen their paths toward a new phase of growth, productivity and industry leadership,” Attwood said.
Nielsen expects the spin-off transaction to be completed in nine to 12 months.
Nielsen Global Connect provides consumer packaged goods manufacturers and retailers with accurate, actionable information and a global picture of the complex and changing marketplace that brands need to innovate and grow their businesses.
Nielsen Holdings PLC is a global measurement and data analytics company that marries proprietary data with other data sources to help clients around the world understand what's happening now, what's happening next and how to best act on this knowledge.