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Nestlé Plans to Sell Its US Confectionery Business


A recent press release put out by Nestle revealed that they plan to explore some strategic options for the confectionery line in the US that involves the sale of the business. The  deal is slated to go through by end of 2017.

Bloomberg reports that Ulf Mark Schneider, chief executive officer of Nestlé, has gone against the grain of his predecessor, Paul Bulcke, who hoped to revamp the confectionery business.

Although the company plans to part ways with the U.S. candy market, the sale won’t cover the Toll House baking products, which means U.S. customers can keep making those iconic chocolate chip cookies, and will continue to grow the sweets category on a global scale.

Shifting Focus

The news is a clear signal that the company aims to focus on growing its healthier brands and expanding on categories including pet care, bottled water, frozen meals, infant food, and ice cream, according to the press release.

With sales of CHF 26.7 billion in 2016, the US is Nestlé’s largest market. The confectionery business represents about three percent of US sales. Nestlé products can be found in 97 percent of US households under brands such as Purina, Nestlé Pure Life, Coffee-Mate, Gerber and Stouffer’s. The company employs over 51,000 people in more than 120 locations across the US, including 77 factories and 10 R&D centres.

Will Americans have to go without their favourite candies or will they be transformed into different better versions by the buyers?