Nestle sells U.S. candy to Ferrero amid health push

Chocoladefabriken Lindt & Spruengli AG

16/01/2018 17:00

By Martinne Geller and Francesca Landini 
    LONDON/MILAN, Jan 16 (Reuters) - Swiss food group Nestle 
 NESN.S  agreed to sell its U.S. confectionery business to 
Italy's Ferrero for $2.8 billion, it said on Tuesday, the first 
major sale from CEO Mark Schneider and a small step on its path 
towards healthier products. 
    The U.S. unit, home to local, mass-market names BabyRuth, 
Butterfinger and Crunch, has been underperforming rivals for  
years, suffering from consumers' preference for healthier snacks 
like fruit and nut bars and premium brands like Lindt  LISN.S . 
    But for Italian family-owned Ferrero the acquisition is a 
chance to quickly build important scale and negotiating power in 
the key U.S. market, which has been its top priority. 
    The maker of Nutella spread and Ferrero Rocher pralines will 
become the third-largest chocolate company in the United States 
and the world, according to Euromonitor International.  
 
 (Reporting by Martinne Geller in London; editing by Alexander 
Smith) 
 ((martinne.geller@thomsonreuters.com; +44)(0)(2075420797; 
Reuters Messaging: martinne.geller.reuters.com@reuters.net)) 
 
Keywords: NESTLE M&A/FERRERO