Glendale, CA — Nestlé SA says it is exploring strategic options for its U.S. confectionery business, including the possibility of selling the business unit. The company reports the covers only the U.S. market only and is expected to be completed by the end of this year.
Nestlé’s U.S. confectionery business, which includes both chocolate and non-chocolate brands, had sales of around $923 million in 2016, representing about 3 percent of the company’s overall U.S. sales. The company’s U.S. portfolio includes Crunch, Butterfinger, BabyRuth, 100Grand, SkinnyCow, Raisinets, Chunky, OhHenry!, SnoCaps, SweeTarts, LaffyTaffy, Nerds, FunDip, PixyStix, Gobstopper, BottleCaps, Spree and Runts.
Word from the company is the review does not extend to its Toll House baking products, which it describes as a strategic growth brand which it will continue to develop in the U.S. market.
In a statement the company said it “remains fully committed to growing its leading international confectionery activities around the world, particularly its global brand KitKat.” Nestlé’s global confectionery brands had sales of more than $9 billion in 2016.
The company notes it will continue to invest and grow in the U.S., where it has leadership positions in categories including petcare, bottled water, frozen meals, infant food and ice cream. With sales of more than $27 billion in 2016, the U.S. is Nestlé’s largest market, where it employs more than 51,000 people in more than 120 locations, including 77 factories and 10 research and development centers.