Last updated on June 20th, 2017 at 08:32 am
Nestlé is exploring strategic options for its U.S. confectionery business, including a potential sale. The review covers the U.S. market only and is expected to be completed by the end of this year.
Nestlé’s U.S. confectionery business had sales of more than $900 million in 2016. It primarily includes chocolate brands like 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” that the company says it will continue to develop in the U.S. market.
Nestlé says it remains fully committed to growing its leading international confectionery activities around the world, particularly its global brand KitKat.
The U.S. is Nestlé’s largest sales market. The confectionery business represents about 3 percent of U.S. sales. Nestlé products can be found in 97 percent of U.S. households, the company reports.
Nestlé says it will continue to invest and grow in the U.S., where it has leadership positions across a large number of categories, including as petcare, bottled water, frozen meals, infant food and ice cream. Nestlé says it will continue to innovate across these categories to “meet rapidly-changing consumer demand.”