Lupin 2024

Nestlé mulls sale of U.S. candy business

Print Friendly, PDF & Email

ARLINGTON, Va. — Nestlé announced that it’s exploring a possible sale of its U.S. confectionery business.

The food and beverage giant said a potential divestiture is among strategic options being considered for the business unit, and the review — covering the U.S. market only — is slated to be completed by the end of this year.

Nestlé’s U.S. candy business had sales of approximately $925 million in 2016. The confectionery unit accounts for about 3% of Nestlé’s sales in the United States, which is the company’s largest market with total sales $27.4 billion.

In the United States, Nestlé’s confectionery offerings include chocolate brands such as Butterfinger, Baby Ruth, 100 Grand, Skinny Cow, Raisinets, Chunky, Oh Henry! and Sno Caps, as well as non-chocolate candy brands such as SweeTarts, Laffy Taffy, Nerds, Fun Dip, Pixy Stix, Gobstopper, Bottle Caps, Spree and Runts. The portfolio also includes the international chocolate brand Crunch.

Nestlé noted that it plans to continue to invest and grow in the United States, where it holds leadership positions in a range of consumables categories, such as pet care, bottled water, frozen meals, infant food and ice cream.

“Nestlé will continue to innovate across these categories to meet rapidly changing consumer demand,” the company said in a statement.

Nestlé said its products — including such brands as Purina, Nestlé Pure Life, Coffee-Mate, Gerber and Stouffer’s — can be found in 97% of U.S. households. The company employs more than 51,000 people in over 120 locations across the United States, including 77 factories and 10 research-and-development centers.

Toll House baking products aren’t being included in the strategic review, Nestlé’s said, calling Toll House a “strategic growth brand” that it will continue to develop in the U.S. marketplace.

Nestlé added that it remains “fully committed” to growing its international confectionery business worldwide. particularly its Kit Kat global chocolate brand. The company’s global candy sales totaled more than $9 billion last year.


ECRM_06-01-22


Comments are closed.

PP_1170x120_10-25-21