Ferrero Gains Nestlé’s US Candy Business
On Tuesday, January 16, Nestlé announced that it agreed to sell its US confectionary business to Ferrero for $2.8 billion in cash. Nestlé’s confectionary business, which represents about 3.0% of its total US group sales, was losing market share to bigger rivals such as Hershey (HSY) and Mars. A consumer shift toward healthy foods and away from sugary foods may have further encouraged Nestlé to divest its candy business in the US (SPY).