Nestle reviews sale of US confectionery business

Signal of change / Nestle reviews sale of US confectionery business

By Anna Simpson / 30 Jun 2017
Nestle, the world's largest food manufacturer, has released a statement saying that it is exploring options for its confectionery business in the US, including a possible sale. The review is to be complete by the end of 2017.   The US confectionary arm of the Swiss food group had sales of CHF 900 million (USD 940 million) in 2016: only 1% of its total sales. 

So what?

The move could be part of Nestle's strategic shift towards healthier products, in response to rising awareness among consumers of nutritional health impacts. Sugar has come under criticism as a major factor in obesity, which is considered a global epidemic by the World Health Organization.     Last year, Nestle appointed a healthcare veteran as CEO.    While established food brands are entering a necessary phase of 'corporate health responsibility', many new brands are promoting the positive, preventative health qualities of their products.   

Sources

http://www.nestle.com/media/pressreleases/allpressreleases/us-confectionery-business 

What might the implications of this be? What related signals of change have you seen?

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