FMCG giant Nestle has revealed that it is considering the divestment of its confectionery brands in the USA, as part of a “strategic review” in the country.
Announcing the move in a statement, the firm said that it would “explore strategic options for its US confectionery business, including a potential sale”, emphasising that the review covered the US market only and adding that it was “fully committed to growing its leading international confectionery activities around the world, particularly its global brand KitKat”.
Nestle’s US confectionery business primarily includes local chocolate brands such as Butterfinger, BabyRuth, 100Grand, SkinnyCow, Raisinets, Chunky, OhHenry! and SnoCaps, as well as local sugar confectionery brands such as SweeTarts, LaffyTaffy, Nerds, FunDip, PixyStix, Gobstopper, BottleCaps, Spree and Runts. In 2016, Nestle generated around 900 million CHF ($923 million) of revenue from its confectionery brands in the US, just 3% of the company’s total sales in the country.
“Nestlé 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”, the company added.
The review is expected to be concluded by the end of the year.