InDaily InDaily

Support independent Journalism Donate Subscribe
Support independent journalism


Nestlé to offload more sweet brands


A week after offloading its Violet Crumble product to South Australian company Robern Menz, Swiss food and drink giant Nestlé is set to sell its US candy business.

Comments Print article

Nestlé will sell the business to Italy’s Ferrero for about $US2.9 billion ($A4.1 billion) in cash.

Ferrero will take over iconic chocolate brands Butterfinger and Crunch bars, as well as the sugary Nerds, SweeTarts and FunDip.

After a review of its portfolio last summer, Nestlé hinted that it might sell its US business, with its eye on higher-growth areas like pet care, coffee and infant nutrition.

In September, Nestlé announced that it bought a majority stake in Blue Bottle Coffee, a high-end coffee company. Other Nestle brands include Purina, Gerber and Stouffer’s.

Nestlé, based in Switzerland, says its US candy business accounts for about 3 per cent of its US division’s sales.

The deal is expected to close at the end of the first quarter.

Last week, Adelaide confectionery company Robern Menz announced it had signed an agreement to buy the Violet Crumble brand from Nestlé, with the help of $1.65 million in grant and loan funding from South Australian taxpayers.

Robern Menz CEO Phil Sims said at the time that Nestlé had offloaded the product because it wasn’t a global brand and denied any suggestion that Violet Crumble had been a poor performer.

“It’s been a fantastic performer over 100 years,” said Sims.

“Nestlé’s focus as the world’s largest food business is on global brands … the directive is to focus on those global brands.

– with AP

Make a comment View comment guidelines

Local News Matters

Media diversity is under threat in Australia – nowhere more so than in South Australia. The state needs more than one voice to guide it forward and you can help with a donation of any size to InDaily. Your contribution goes directly to helping our journalists uncover the facts. Please click below to help InDaily continue to uncover the facts.

Donate today
Powered by PressPatron


Show comments Hide comments
Will my comment be published? Read the guidelines.

More Business stories

Loading next article