Nestle Considers Selling Its U.S. Candy Business as Demand Wilts
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Nestle said it may sell its U.S. confectionery business including the Butterfinger and Crunch brands as it explores strategic options for the unit amid sluggish demand for chocolate.
The review will be completed by the end of the year, according to a statement Thursday from the Vevey, Switzerland-based company. The unit had sales of about 900 million francs ($923 million) in 2016.
The food industry is under pressure to reduce costs after Kraft Heinz Co.’s unsuccessful bid for Unilever earlier this year showed that even the largest companies in the industry could become targets. Chocolate makers especially are grappling with weak U.S. consumption as Americans increasingly turn their backs on sugar. In March, Hershey Co. announced plans to cut 15% of its workforce six months after rebuffing a takeover bid from Mondelez International Inc.
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