Nestle expects to sell its U.S. confectionery business in the first quarter of 2018, following a review launched earlier this year as part of efforts to improve performance at the world’s largest packaged food company.
Nestle said in June it was exploring strategic options for the more than $900 million per year business, which includes Butterfinger and BabyRuth.
The review was limited to the United States, where Nestle is No. 4 behind Mars, Hershey and Mondelez International.
“Our strategic review has led to us deciding to divest the business and a robust sale process is currently underway which we expect to conclude in Q1 2018,” a spokeswoman said on Thursday.
Nestle’s chief executive Mark Schneider said in September that about 10 percent of the group’s sales would change in the mid-term as a result of buying and selling assets.
Nestle has been trying to make itself into a “nutrition, health and wellness” company by reducing sugar, fat and salt in its products and moving into health-related businesses. Earlier this month, it announced a deal to buy Canadian vitamin maker Atrium Innovations.
Nestle has stressed that its decision to sell the U.S. confectionery business is more about its weak competitive position rather than chocolate being unhealthy.
“Overall, confectionery category remains very attractive for the company,” Marco Settembri, Nestle’s head of Europe, Middle East and North Africa, said in September.
The company has developed a new technology with the potential to reduce sugar in some products without affecting the taste. It has said it would begin to use it next year.
By Martinne Geller
Carlsberg has announced the departure of its chief financial officer (CFO), Heine Dalsgaard, after six years in the position. In a statement, Carlsberg said that Dalsgaard was resigning from the post to take up the role of CFO at a private equity-backed company in a different industry.
Kellogg will split into three independent companies to focus on the snack business, Reuters reported Tuesday. The snacking portfolio will comprise the main business, while the North America cereal unit and the plant-based business will be spun off. The company is also considering a sale of the plant-based business.
The snacks giant says the acquisition will help build on its commitment to “lead the future of snacking” in key geographies worldwide. Once the transaction is completed, Mondelēz will continue to operate the Clif Bar business from its headquarters in Emeryville, California. The snack giant will also continue to manufacture Clif Bars’ products, which include Clif Bar, Luna and Clif Kid, at its facilities in Idaho and Indiana.