The first Big Food merger of 2018 is poised to be a sweet one: Italian chocolate maker Ferrero SpA announced its intention to buy Nestle’s U.S. candy business for $2.8 billion. Bloomberg reported the rumor last week, and today Nestle confirmed the deal. In addition to its namesake foil-wrapped truffles, Ferrero Rocher also makes Nutella and Tic Tacs.
Nestle’s confectionery division includes numerous iconic candy bars such as Butterfinger, Baby Ruth, Kit Kat, and Nestle Crunch. Though the world’s biggest food and beverage brand has long been synonymous with chocolate in the U.S., it’s pivoting away from sweets as sales of sugary products have declined in recent years. Nestle has instead poured its money into indie coffee brands, acquiring a majority stake in Bay Area-based Blue Bottle last year and also snapping up Austin-based Chameleon Cold Brew.
“This move allows Nestle to invest and innovate across a range of categories where we see strong future growth... such as bottled water... [and] coffee,” Nestle CEO Mark Schneider said in a statement.
Bloomberg notes that Nestle rival Hershey has also made moves to diversify its business, recently coughing up more than $900 million to buy the snack brand that produces SkinnyPop popcorn. Falling sales have plagued the soda industry, too, with companies like Coca-Cola investing in less-sugary options like Topo Chico mineral water.
Of note: The sale excludes KitKat and Toll House. A Ferrero-Nestle merger will certainly present some intriguing chocolate possibilities: Nutella Baby Ruths? Butterfinger rochers?
• Ferrero Near Deal to Buy Nestle’s U.S. Chocolate Unit [Bloomberg]
• Nestle Wants Out of the American Chocolate Industry [E]
• Nestle Buys Hipster Coffee Brand Blue Bottle [E]
FAQs
Nestlé today announced that it agreed to sell its U.S. confectionery business to Ferrero for USD 2.8 billion in cash.
Is Nutella owned by Nestle? ›
Nutella is manufactured by the Italian company Ferrero and was introduced in 1964, although its first iteration dates to 1963.
Does Nutella own Ferrero Rocher? ›
Since both products are made by the same manufacturer, the Italian company Ferrero , it would be easy to assume that the filling of Ferrero Rocher is the same as Nutella. As far as I can tell, the filling of Ferrero Rocher is not Nutella, but is a similar hazelnut chocolate cream.
What is the profit of Nutella? ›
Best known for its sweetened hazelnut cocoa spread, Nutella, Ferrero recorded €1.76 billion in annual earnings from August 2022 to August 2023, resulting in a profit of €53.2 million, up from €32.6 million the previous year for the Italian market, while Ferrero's global results are expected to be shared in February ...
Who owns Ferrero now? ›
How rich is the owner of Ferrero Rocher? ›
He assumed the leadership of the confectionery company Ferrero SpA after the death of his brother Pietro Ferrero in 2011. His personal fortune is estimated at $43.8 billion in 2024 according to Forbes, making him the 26th richest in the world, and richest person in Italy.
Does Hershey own Nutella? ›
NEW YORK - Americans apparently like smearing their foods with chocolatey spreads. The Hershey Co. said it was introducing a line of chocolate spreads, including a hazelnut variety reminiscent of Nutella, a spread made by the Italian company Ferrero.
Is Hershey owned by Nestle? ›
Hershey is its own company, and it's one of the largest chocolate manufacturers in the world. However, Nestlé is a major player in the food and beverage industry, with a diverse portfolio that includes chocolate products among many others. Hershey is American and Nestle is Swiss.
Which family owns Nutella? ›
The Ferrero family was the first Italian manufacturer after the Second World War to open production sites and offices abroad in the confectionary sector, turning the company into a true international player. Its international expansion began in earnest in 1956, when a large plant in Germany was opened.
Who bought Nestle? ›
The acquisition was completed that December. On 16 January 2018, it was reported that Ferrero was purchasing Nestlé's American confectionery business for $2.8 billion.
Real Time Net Worth. Reflects change since 5 pm ET of prior trading day. Giovanni Ferrero is executive chairman of his family's namesake confections business, which posted $18 billion sales in 2023. The firm is best known for its iconic Nutella chocolate-hazelnut spread, Kinder chocolates and Tic Tac mints.
Can diabetics eat Nutella? ›
Have you seen the ingredients that are in real Nutella? Take a look at this image, which shows them in layers. With 58% being sugar, it's really not a great choice to add to a diet complicated with diabetes.
Is it OK to eat Nutella daily? ›
Like any high-sugar food, Nutella should be viewed as a treat. The problem is that people often use it more as a breakfast spread than as a dessert. Consuming Nutella every day will increase the amount of added sugar in your diet, and most people already consume much more added sugar than is recommended.
Is Nutella bad for cholesterol? ›
Contains a high level of saturated fat
For this reason it has long been known as a "bad" fat that raises the "bad" cholesterol, LDL.
How much did Nestle sell for? ›
In January 2018, Nestlé USA announced it was selling its US confectionary business to Ferrara Candy Company, an Italian chocolate and candy maker. The company was sold for a total of an estimated $2.8 billion.
Is Nestle under Ferrero? ›
Ferrero has agreed to pay $2.8 billion for Nestle's U.S. confectionary business, which includes brands such as Butterfinger, Baby Ruth, Oh Henry!, Laffy Taffy, and Nerds.
Who owns Nestle company now? ›
Nestle is a publicly owned multinational food processing conglomerate. Retail investors own approximately 68% of the company, while institutional investors own the other 32%. The company comprises many brands and is headquartered in Vaud, Switzerland.
How much is Ferrero Rocher worth? ›
Ferrero sold $12.5 billion worth of sweets last year, and its namesake owners are worth an estimated $31 billion altogether, $21 billion of which belongs to Giovanni, who's the 47th-richest person in the world. Their success took generations.
