Nestlé has announced that it will explore strategic options for its US confectionery business, including a potential sale. The review covers the US market only and is expected to be completed by the end of this year.
Nestlé has announced that it will explore strategic options for its US confectionery business, including a potential sale. The review covers the US market only and is expected to be completed by the end of this year.Nestlé’s US confectionery business had sales of around CHF900 million in 2016. It primarily includes popular local chocolate brands such as Butterfinger, BabyRuth, 100Grand, SkinnyCow, Raisinets, Chunky, OhHenry! and SnoCaps, as well as local sugar brands such as SweeTarts, LaffyTaffy, Nerds, FunDip, PixyStix, Gobstopper, BottleCaps, Spree and Runts. It also comprises the international chocolate brand Crunch.The strategic review does not cover Nestlé’s Toll House baking products, a strategic growth brand which the company says it will continue to develop in the US market.Nestlé says it remains fully committed to growing its international confectionery activities around the world, particularly its global brand KitKat. Nestlé’s global confectionery sales amounted to CHF8.8 billion in 2016.With sales of CHF26.7 billion in 2016, the US is Nestlé’s largest market. The confectionery business represents about 3% of US sales. Nestlé says its products can be found in 97% of US households under brands such as Purina, Nestlé Pure Life, Coffee-Mate, Gerber and Stouffer’s. The company employs over 51,000 people in more than 120 locations across the US, including 77 factories and 10 R&D centres.Nestlé says it will continue to invest and grow in the US, where it has leadership positions across a large number of categories such as petcare, bottled water, frozen meals, infant food and ice cream. Nestlé will continue to innovate across these categories to meet rapidly-changing consumer demand.