Nestlé Considers Sale of US Candy Business

A couple of months ago, Nestlé declared that it was considering selling its American candy business, as demand continues to fall. Nestlé is the Swiss giant responsible for treats such as Gobbstoppers, Nerds, Butterfingers and Crunch chocolate bars. Although no official reason has been announced for exactly why Nestlé are considering selling, it may have to do with some of the reasons we’ve discussed on this blog before.

Though Nestlé brought in around $922 million in 2016, they still had the following to say about their fiscal year, “The performance of confectionery in the US was disappointing, impacted by the competitive environment and low growth in the mainstream chocolate market.”

As Americans push for healthier snack alternatives and confections with organic ingredients, there is no doubt that candy companies will have to rethink how they go about their sales. This also makes me wonder if the growing popularity of online grocery shopping may be contributing to the decline of impulse item sales, as discussed in last weeks article.

Though Nestlé is still considering letting go of its American candy unit, it said that it will hold on to its international candy businesses, including the incredibly successful KitKat Bar.

For more candy news, make sure to look out for our articles every week. Don’t forget to like us on Facebook and follow us on Twitter.

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