Sector News

Hershey eyes Nestle's US confectionery business

October 17, 2017
Food & Drink

Four months after Nestlé began to explore options for its US confectionery business, including a potential sale, the company is drawing interest from a range of possible buyers including Hershey’s, which is reportedly preparing a bid.

According to US media reports, the chocolate giant is expected to compete against other companies and private equity firms and the first-round bids for the Nestlé business are due later this week.

Michele Buck was recently appointed as the new Hershey CEO and she has already said the company is looking to cut costs and improve profit margins. In March, Hershey announced it was cutting around 15 percent of its global workforce in a jobs cull.

Sources have also told American news channel CNBC that Ferrara Candy, owned by private equity firm L Catterton, is also expected to put forward an introductory offer and how Nestlé is exploring options that the company could be worth as much as US$2.5 billion.

Nutella-owner Ferrero is also understood to be interested.

During Nestlé’s June announcement it said how its US confectionery business had sales of around CHF900 million (US$921 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.

At the time, a statement said: “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.”

Source: Food Ingredients First

comments closed

Related News

January 15, 2022

DSM forges F&B business group integrating taste, texture and health know-how

Food & Drink

Health and nutrition giant DSM is showcasing a new integrated F&B operating structure that unifies food specialties, hydrocolloids and nutritional products. Positioned as a business group, it will harness the gamut of taste, texture and health solutions to manufacturers in the F&B sector.

January 15, 2022

Keeping food transparent: F&B suppliers talk eliminating bias and the pitfalls of eco-labeling

Food & Drink

FoodIngredientsFirst speaks to key suppliers Corbion, Agrana Fruit and Kerry to discuss what core strategies are helping keep food businesses up-to-speed with their environmental reporting while remaining bias-free.

January 15, 2022

Titanium dioxide EU ban comes into force, companies have six months to adjust

Food & Drink

France banned the use of the additive in 2020, leading companies such as Lonza to launch Vcaps Plus White Opal, its first commercially-available titanium dioxide-free semi-opaque capsule for food supplements. The move followed several lobby groups urging the European Commission to prohibit TiO2.

Send this to a friend