Nestlé to explore strategic options for its US confectionery business

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Vevey, 15 June 2017

Nestlé to explore strategic options for its US confectionery business

Nestlé will explore strategic options for its US confectionery business, including a potential sale. The review covers the US market only and is expected to be completed by the end of this year.

Nestlé's US confectionery business had sales of around CHF 900 million in 2016. It primarily includes popular local chocolate brands such as
Butterfinger
,
BabyRuth
,
100Grand, SkinnyCow
,
Raisinets
,
Chunky
,
OhHenry!
and
SnoCaps
, as well as local sugar brands such as
SweeTarts
,
LaffyTaffy
,
Nerds
,
FunDip
,
PixyStix
,
Gobstopper
,
BottleCaps
,
Spree
and
Runts
. It also comprises the international chocolate brand
Crunch
.

The strategic review does not cover Nestlé's iconic
Toll House
baking products, a strategic growth brand which the company will continue to develop in the US market.

Nestlé remains fully committed to growing its leading international confectionery activities around the world, particularly its global brand
KitKat
. Nestlé's global confectionery sales amounted to CHF 8.8 billion in 2016.

With sales of CHF 26.7 billion in 2016, the US is Nestlé's largest market. The confectionery business represents about three percent of US sales. Nestlé products can be found in 97 percent of US households under brands such as
Purina,
Nestlé Pure Life, Coffee-Mate,
Gerber
and
Stouffer's
. The company employs over 51,000 people in more than 120 locations across the US, including 77 factories and 10 R&D centres.

Nestlé will continue to invest and grow in the US, where it has leadership positions across a large number of categories such as petcare, bottled water, frozen meals, infant food and ice cream. Nestlé will continue to innovate across these categories to meet rapidly-changing consumer demand.

Contacts

Media: Robin Tickle  Tel.: +41 21 924 22 00


Media Nestlé USA: Lisa Gibby  Tel.:   +1 (202) 292 29 28


Investors: Steffen Kindler  Tel.: +41 21 924 3509