Nestle to explore strategic options for its US confectionery business
Brands for sale include Butterfinger, BabyRuth, 100Grand, SkinnyCow, Raisinets, Chunky, OhHenry! and LaffyTaffy
Nestle (NSRGY) to explore strategic options for its US confectionery business, including a potential sale.
The review covers the US market only and is expected to be completed by the end of this year. Nestle’s US confectionery business had sales of around CHF 900M 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 Nestle’s Toll House baking products, a strategic growth brand which the company will continue to develop in the US market.
Nestle remains fully committed to growing its leading international confectionery activities around the world, particularly its global brand #KitKat.
Nestle’s global confectionery sales amounted to CHF 8.8B in 2016.
Potential buyers include Hershey’s (HSY), Carlisle Group Kraft-Heinz (KHC), and Warren Buffett’s Berkshire Hathaway (BRK-B).
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