Nestlé says it’s willing to sell U.S. candy unit
Nestlé said on Thursday that it was considering a sale of its American candy business, the home of treats that include Gobstoppers, Nerds and Butterfinger and Crunch bars, as demand for sweets has fallen off in the United States.
By declaring that it will “explore strategic options” for its candy business, the Swiss consumer company may help to further consolidate the industry to a few leading players. Giants in the industry have already pursued ways to cut costs through deal-making, including when Mondelez International — once part of Kraft — unsuccessfully bid for Hershey last year.
In a statement, Nestlé said that it remained committed to the U.S. market, where it sells pet food and bottled water, and where it had more than $27 billion in sales across all its businesses last year.
But the candy business has waned as fewer Americans have displayed an appetite for sweets, and chocolate in particular. Sales in the Nestlé confectionary unit fell last year, to about $922 million, in what the company said in February was a “disappointing” performance.
Though Nestlé said that it was considering a sale of the U.S. confectionary division, it will hold on to its international candy businesses, including its successful KitKat brand. And the Swiss company said it would also hold onto its Toll House line of baking goods, declaring it a “strategic growth brand.”