Nestlé sells U.S. confectionery business to Ferrero for $2.8B
Nestlé will be selling its U.S. confectionery business to Ferrero. The $2.8 billion deal will make Tic Tac and Nutella maker Ferrero the third-largest confectionery company in the U.S. market, bringing under its arm a unit that had $900 million in sales in 2016.
“With Ferrero we have found an exceptional home for our U.S. confectionery business where it will thrive,” Nestlé CEO Mark Schneider said. “At the same time, this move allows Nestlé to invest and innovate across a range of categories where we see strong future growth and hold leadership positions, such as pet care, bottled water, coffee, frozen meals and infant nutrition.”
Along with a brand portfolio that includes such brands as Butterfinger, Wonka, Raisinets, 100Grand, BabyRuth, Crunch, SweeTarts and more, Ferrero will acquire three Illinois manufacturing facilities from Nestlé. The transaction excludes Nestlé’s Toll House baking products, which Nestlé said it would continue to develop. It also excludes the KitKat brand, which the company said it would continue to grow globally.
“We are very excited about the acquisition of Nestlé’s U.S. confectionery business, which has an outstanding portfolio of iconic brands with rich histories and tremendous awareness,” Ferrero executive chairman Giovanni Ferrero said. “In combination with Ferrero’s existing U.S. presence, including the recently acquired Fannie May Confections Brands and the Ferrara Candy Company, we will have substantially greater scale, a broader offering of high-quality products to customers across the chocolate snack, sugar confectionery and seasonal categories, and exciting new growth opportunities in the world’s largest confectionery market. We look forward to welcoming the talented team from Nestlé to Ferrero and to continuing to invest in and grow all of our products and brands in this key strategic and attractive market.”
Ferrero said it would continue to operate through its offices in Glendale, Calif., as well as other locations in Illinois and New Jersey. The two companies said they expect the transaction to close in the first quarter of 2018.
Post Consumer Brands unveils 2018’s new cereals
Post Consumer Brands is sharing the six new kinds of cereal it will launch by the end of the month, as well as additions to some of its existing brands and expanded distribution of certain varieties.
The company will be introducing Great Grains Coconut Almond Crunch, which contains coconut, almonds and wheat flakes, and which the company said is free of high fructose corn syrup, artificial flavors and artificial colors. Also hitting shelves is Post Grape-Nuts Trail Mix Crunch, which contains vanilla-flavored granola, cranberries, puffed barley and Grape-Nuts. Also hitting shelves will be Mom’s Best Crispy Cinnamon Rice, which the company said is gluten-free, as well as free of artificial flavors and colors.
The company also is adding three Malt-O-Meal cereal varieties, including Double Chocolate Brownie Crunch, Cinnamon Dyno-Bites and Golden Honey O’s
Cereals getting expanded distribution are Post Oreo O’s and Post Honey Maid S’mores, as well as the Mixed Berry, Cinnamon Roll and S’mores Bites varieties of Post Shredded Wheat, which launched in select stores last June.
“As tastes continue to evolve, we are happy to meet the needs of our consumers by offering so many great cereal options,” Post Consumer Brands chief marketing officer Roxanne Bernstein said. “Responding with desired flavors to meet family needs, while making them available at more stores across the country, is what we pride ourselves on.”
Keurig looking to brew solid growth with latest hire
Keurig Green Mountain in January named Andrew Archambault, most recently chief customer and commercial officer at Nature’s Bounty, to the role of senior vice president of U.S. commercial leadership. With the move, Archambault joins the market leader in specialty coffee and single-serve brewing systems.
Archambault has more than 20 years of experience in the consumer packaged goods industry. He was the vice president and managing director for Bacardi USA, leading nearly 40% of Bacardi's U.S. spirits revenue. And Archambault is a Coca-Cola alumnus, where he held various sales and commercial leadership positions, including vice president roles with The Coca-Cola Company and market unit vice president for Coca-Cola Enterprises.
Keurig brewers and single serve hot beverages are in more than 20 million homes and offices throughout North America, the company said. To date, more than 50 leading global coffee, tea and cocoa brands have partnered with Keurig, joining beloved owned brands like Green Mountain Coffee and the Original Donut Shop coffee.