Nestlé is looking to sell off its u.s. confectionery business
Posted June 27
Say it ain’t so! We could very well be saying goodbye to some of our favorite and popular chocolate brands if Nestlé decides to sell off its U.S. confectionery business.
The brands that would be affected include many of our favorites, such as Kit Kat, Crunch, Baby Ruth, Butterfinger and 100 Grand. The confectionery business sale would also include some of our favorite non-chocolate candy brands, including SweeTARTS, Nerds, Laffy Taffy and Gobstoppers.
“Nestlé will explore strategic options for its U.S. confectionery business, including a potential sale,” the company said in a media statement just several weeks ago.
Though Nestlé has yet to find a buyer, the news left many candy lovers worried about the fate of some of their favorites.
But Why Sell?
Alain Oberhuber, an analyst from MainFirst bank, told Bloomberg, “It’s a first step away toward health and wellness.” It seems that since Mark Schneider became CEO of Nestlé this past February, the company is setting its sights on more nutritious products.
Believe it or not, Nestlé products can be found in 97 percent of U.S. households. This includes brands such as Purina, Nestlé Pure Life, Coffee-Mate, Gerber and Stouffer's. And although the company is most well-known in the U.S. for its iconic candy bars, the sales from the confectionery aspect of the business actually only add up to around 3 percent of U.S. sales.
What Does This Mean?
Because the company has yet to sell its confectionery business, reports maintain that no one really knows for sure what’s going to happen to the candy brands. But representatives for Nestlé did say that the company remains committed to its chocolate business outside of the U.S., especially its Kit Kat brand.
Representatives for Nestlé also mentioned that they’d complete a strategic review by the end of the year. This means we should hopefully have a more definite answer as to whether we’ll still be able to purchase the company’s famous candy bars here in the U.S. by the end of the year.
If any good news comes from the press release the Swiss-based company released, it’s that there are no plans to sell the Toll House brand, which includes chocolate chips and baking products. In fact, Nestlé announced that they will work on a strategic growth plan for Toll House in the U.S. market.