Nestle sells its confectionery business in the United States

Nestle продает свой кондитерский бизнес в США

The company leaves the US market

Swiss food manufacturer Nestle agreed to sell until spring 2018 assets of Italian confectionery company Ferrero for $2.8 billion.

Swiss food manufacturer Nestle agreed to sell its confectionary assets in USA of Italian Ferrero for $2.8 billion in cash. The transaction is expected to close by the end of the first quarter of 2018, writes Vesti economy.

This is the first major sale to Nestle CEO Mark Schneider, and a small step on the way to the production of more healthy foods, Reuters reports.

Nestle called a basis for the weak sales position of the American division, which is behind Hershey, Mars Inc. and Lindt.

“This step allows Nestlé to invest and innovate in a number of categories where we expect strong growth in the future and occupy a leading position, such as the segments, pet care, bottled water, coffee, frozen food and baby food” – are in the message words of Mark Schneider.

The share of the U.S. confectionery business Nestle accounts for about 3% of the sales of the Nestle Group in the United States.

The American unit of Nestle owns local brands of chocolate Butterfinger, Crunch, BabyRuth, 100Grand, Raisinets, Chunky, OhHenry! and SnoCaps, as well as local brands of other confectionery products such as SweeTarts, LaffyTaffy, Nerds, FunDip, PixyStix, Gobstopper, BottleCaps, Runts and Spree.

The deal involves the sale of only targeting U.S. brands of confectionery and does not include the well-known brand of baking Toll House, which is strategic and which Nestle will continue to develop.

“Nestle remains fully committed to the development of operations in the field of confectionery products around the world, especially its global brand KitKat”, – stated in the message of the company.

The deal gives Ferrero a chance to quickly zoom in on the key us market, where the manufacturer of Nutella and Ferrero Rocher has made two deals last year.

According to Euromonitor International, the transaction Ferrero to become the third largest producer of chocolate products in the United States and around the world.

We will remind, in 2015 Nestle called the only contender for confectionery Corporation Roshen.