Nestlé Might Sell its U.S. Candy Businesses Because We're Not Eating Enough Sweets
It's good for our health, but bad for their business.
Butterfinger and Gobstoppers lovers, this may come as a shock to you. Smarties fans, you might want to hold onto your hats, too. And Nerds and Laffy Taffy connossieurs...well, you might want to sit down for this.
At least those of you who live stateside.
There's some news abreast in the candy world, and unless you're a Nestlé stockholder, it's probably not going to make you very happy. As reported by The New York Times, Nestlé is currently considering selling the American side of its candy business, simply due to the fact that "emand for sweets has fallen off in the United States." Unfortunately, this is almost as bad as it sounds; the company may be giving up on the American market for many of its treasured, nostalgia-inducing brands, though it's possible they could be sold to another company. The Swiss confectioner has instead dedicated itself to exploring “strategic options."
So, what does this mean for the sweet treats we know and love? Well, luckily, Nestlé is currently maintaining control of its international candy businesses, which include KitKat. That means we don't have to worry too much about watching those disappear from store shelves. And—thank goodness—the company also announced that it would not yet let go of its Toll House line, since it views that as a “strategic growth brand.” So you can go ahead and breathe another sigh of relief: The days of raw cookie dough bingeing are not yet over.
What's more, the brand is also committed to staying in the American market with many of its other products, including pet food, instant coffee, and bottled water. These saw a whopping $27 billion in successful sales last year.
But sales weren't quite so exceptional when it came to its candy products. In fact, they were pretty dismal: Sales in the business' confectionary unit dropped last year to around $922 million, which means the brand's work in the U.S. confectionery business has accounted for just 1 percent of its overall sales. The company had recently called the numbers “disappointing."
100Grand, SkinnyCow, and Raisinets are among the many beloved brands that would be sold.
"This might seem small stuff," said RBC Capital Markets analyst James Edwardes Jones, according to Reuters. "But in our view it could be a significant step by new-ish CEO Mark Schneider...toward a more deliberate and efficient capital allocation strategy."
Well, then. We'll just have to—*sniff*—get used to making our own candy.