M&A

Ferrero completes acquisition of Nestlé US candy business, swallowing more than 20 brands

By Douglas Yu contact

- Last updated on GMT

Ferrero is now the third largest chocolate manufacturer in the US. Pic: CN
Ferrero is now the third largest chocolate manufacturer in the US. Pic: CN
Nutella maker Ferrero has completed the acquisition of Nestlé’s US confectionery business, including more than 20 of its brands such as Butterfinger, BabyRuth, Crunch, and SweeTarts.

Nestlé’s three US confectionery manufacturing facilities in Illinois and its associated office space in California are now managed by Ferrero-owned Ferrara, said the company.

Nestlé did not immediately comment on any executive position changes upon the acquisition, but the president of its confections and global foods division, Carlos Velasco​, previously noted his responsibilities at the National Confectioners Association (NCA) would be terminated, and he would no longer be part of NCA’s board.

The $2.8bn deal makes Ferrero the third largest manufacturer​ in the US chocolate market, according to Euromonitor.

However, analysts suspected that Nestlé’s not being premium might be a challenge as Ferrero hoped to expand its US footprint with more premium products​, ConfectioneryNews previously reported. For example, the company purchased Chicago-based chocolate company Fannie May​ about a year ago.

Giovanni Ferrero, executive chairman of the Ferrero group, said, “[Nestlé’s US candy brands are] a strong addition to Ferrero’s growing US platform, which includes the recently acquired Ferrara Candy Company and Fannie May Confections Brands.

“With our substantially increased scale and broader offering of high-quality products across the chocolate snack, sugar confectionery and seasonal categories, Ferrero is poised for continued growth in the key US market,”​ he added.

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