Nestlé will explore 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 around CHF 900 million 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 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 about CHF 8.8 billion in 2016.
With sales of CHF 26.7 billion in 2016, the U.S. is Nestlé’s largest market. The confectionery business represents about three percent of U.S. sales. Nestlé products can be found in 97 percent of U.S. 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 centers.
Nestlé will continue to invest and grow in the US, where it has leadership positions across a large number of categories such as petcare, bottled water, frozen meals, infant food and ice cream. Nestlé will continue to innovate across these categories to meet rapidly-changing consumer demand.
About Nestlé in the U.S.
Nestlé in the United States is committed to enhancing quality of life and contributing to a healthier future--for individuals and families, for our thriving and resilient communities, and for the planet. Our diverse portfolio of foods and beverages provides nutritious options for every member of the family, and supports both the first 1000 days of life and healthy aging for people and pets.
Nestlé in the U.S. consists of eight main businesses: Nestlé USA, Nestlé Waters North America, Nestlé Nutrition, Nestlé Professional, Nespresso, Nestlé Health Science, Nestlé Skin Health and Nestlé Purina PetCare Company. Together, these companies operate in more than 120 locations in 47 states and employ over 51,000 people. In the U.S., Nestle product sales topped $26 billion in 2015, making it the largest Nestle market in the world.
Nestlé has been recognized as a member of the MIT Technology Review’s “Smartest Companies,” the top food company on Fortune’s “Change the World” List, and the top food company on the Dow Jones Sustainability Index.
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