Nestlé Sold Its U.S. Confectionery Business to Ferrero for $2.8 Billion

In January 2018, Nestlé announced an agreement to sell its U.S. confectionery business to Italy-based Ferrero Group for $2.8 billion in cash, marking a major restructuring of Nestlé’s American food portfolio. The deal was announced on 16/01/2018 after Nestlé had initiated a strategic review of its U.S. sweets operations in 2017. The transaction transferred more than 20 well-known candy brands from Nestlé to Ferrero and reflected Nestlé CEO Mark Schneider’s broader effort to focus the company on faster-growing categories tied to health, wellness, and premium consumer trends. The sale included several long-established American chocolate and sugar confectionery brands. Among the chocolate products transferred were Butterfinger, Crunch, Baby Ruth, and 100 Grand. Ferrero also acquired popular sugar candy lines including Nerds, SweeTarts, Laffy Taffy, Runts, and Raisinets. The agreement covered Nestlé’s U.S. candy manufacturing facilities in Bloomington, Franklin Park, and Itasca, Illinois, along with related operational assets and employees connected to the confectionery division. Nestlé’s decision was linked to changing consumer behavior in the United States, where traditional mass-market candy products faced increasing competition from premium chocolate makers and healthier snack alternatives. Under Mark Schneider’s leadership, Nestlé accelerated investments in categories considered more resilient and growth-oriented, including coffee products such as Nescafé and Nespresso, pet care through Purina, infant nutrition, frozen meals, and consumer health products. The company retained its broader international chocolate business, including global rights to KitKat outside the United States, as well as the Toll House baking brand. For Ferrero Group, the acquisition significantly expanded its footprint in North America. Before the transaction, Ferrero was primarily recognized internationally for products such as Nutella, Ferrero Rocher, and Tic Tac. By acquiring Nestlé’s U.S. confectionery portfolio, Ferrero became the third-largest confectionery company in the United States at the time, behind Mars and Hershey. The purchase also strengthened Ferrero’s manufacturing and retail distribution capabilities across the American candy market. The transaction closed in March 2018 and became one of the largest confectionery industry deals of that year. It highlighted the growing divergence within the global food sector between legacy mass-market confectionery businesses and companies emphasizing nutrition, wellness, premiumization, and specialized consumer products. Why This Moment Matters: Nestlé’s exit from the U.S. candy business illustrated how major multinational food companies were reshaping portfolios in response to evolving consumer preferences and investor expectations. The sale allowed Ferrero to rapidly expand in the United States while enabling Nestlé to redirect capital toward categories with stronger long-term growth prospects and higher operating margins.