Nestle Looks to Shed Some Sweets
Nestle will explore strategic options for its U.S, confectionery business, including a potential sale, the company has announced. The review only covers the U.S. market and is expected to be completed by the end of 2017.
The U.S. confectionery business had sales of around $924 million in 2016. It primarily comprises U.S.-only chocolate brands such as Butterfinger, BabyRuth, 100Grand, SkinnyCow, Raisinets, Chunky, OhHenry! and SnoCaps, as well as endemic sugar brands such as SweeTarts, LaffyTaffy, Nerds, FunDip, PixyStix, Gobstopper, BottleCaps, Spree and Runts. It also includes the international Crunch chocolate brand.
The strategic review does not cover Nestle’s Toll House baking products, a strategic growth brand which the company will continue to develop in the US market.
Nestle remains fully committed to growing its leading international confectionery activities around the world, particularly the KitKat brand. Global confectionery sales amounted to roughly $9.0 billion in 2016.
With sales of $27.4 billion in 2016, the U.S. is Nestle's largest market, although the confectionery business represents only 3% of the business. The company employs about 51,000 people in 120-plus locations across the country, including 77 factories and 10 R&D centers. In February, it unveiled a massive relocation plan to move U.S. headquarters from California to Virginia.
Nestle 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, and plans to continue to innovate across these categories to meet rapidly-changing consumer demand.
Nestle S.A. ranked No. 1 in CGT's list of the Top 100 Consumer Goods Companies for 2016.