Nestlé will explore strategic options for its US confectionery business, including a potential sale. The company has announced a review covering the US market will be completed by the end of this year.
Nestlé’s US confectionery business had sales of around CHF900m 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 iconic Toll House baking products, a strategic growth brand which the company will continue to develop in the US market.
Nestlé underlines that it remains fully committed to growing its leading international confectionery activities around the world, particularly its global brand KitKat. Nestlé’s global confectionery sales amounted to CHF 8.8 billion in 2016.
With sales of CHF 26.7 billion in 2016, the US is Nestlé’s largest market. The confectionery business represents about 3% of US sales. Nestlé products can be found in 97% of US households.
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 pet care, bottled water, frozen meals, infant food and ice cream.