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Ferrero gobbles up Nestle’s US confectionery business for $2.8 billion

Nestle said on Tuesday it has agreed to sell its US candy business to Italy's Ferrero for CHF 2.7 billion ($2.8 billion/2.3 billion euros) in cash as the Swiss food giant shakes up its product portfolio.

Published: 17 January 2018 08:52 CET
Ferrero gobbles up Nestle's US confectionery business for $2.8 billion
Nestle Butterfinger and Butterfinger Cups on a shop shelf. Photo: Joe Raedle/Getty Images/AFP

Ferrero, known for its Tic Tac, Nutella and Ferrero Rocher brands but which has traditionally preferred organic growth to acquisitions, will now be picking up Crunch, Butterfinger and Baby Ruth from Nestle. The sale will make Ferrero the third-largest confectionary company in the US market.

According to media reports, Ferrero competed with major chocolate manufacturer Hershey and private funds, including Rhone Capital, to secure the deal. Executive chairman Giovanni Ferrero said that after the acquisition the Ferrero Group “will have substantially greater scale, a broader offering of high-quality products to customers…” in the United States, the world's largest confectionery market.

READ ALSO: The curious story behind Italy's world-famous Nutella spread Nutella owner Ferrero dies aged 89
Photo: AFP

Nestle's chief executive Mark Schneider said the deal “allows Nestle to invest and innovate across a range of categories where we see strong future growth and hold leadership positions, such as pet care, bottled water, coffee, frozen meals and infant nutrition.

$8 billion market

Nestle has begun to reposition itself since Schneider, who previously headed up German healthcare group Fresenius, took over the reins of the Swiss firm at the start of last year. It has snapped up companies that make vegetarian meals, vitamins and luxury coffee.

Its US candy business registered sales of some 900 million Swiss francs in 2016, in a market worth an overall $8 billion, according to Ibis World. The figure only represented around three percent of its overall US sales, Nestle said.

READ ALSO: Nutella maker's widow is now world's richest Italian

The company added it remains fully committed to growing its leading international confectionery activities around the world, particularly its global brand KitKat.

The family-run Ferrero businesses has 22 production sites and 30,000 employees. In ten years the company has more than doubled its turnover, to more than 10 billion euros.

Since 2014 it has acquired the Turkish group Oltan, specializing in hazelnuts, and the British chocolatier Thorntons before starting its offensive in the US. The deal is expected to be finalized by the end of March, Nestle added.

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FOOD AND DRINK

Six of the most Italian non-alcoholic aperitivo drinks

As well as its most famous cocktails, Italy has a long tradition of making refreshing aperitivo drinks without the alcohol.

Published: 11 April 2024 12:01 CEST
Six of the most Italian non-alcoholic aperitivo drinks

Italy’s favourite aperitivo-hour cocktails are known far beyond the country’s borders, so their names will probably be familiar to you whether you drink them or not.

But if you’re in Italy and not drinking alcohol, you might find yourself stumped when it comes time to order your aperitivo at the bar.

The first time I found myself in this situation, there was no menu. The waiter instead rattled off a long list of all the soft drinks available, most of which I’d never heard of, and I just picked something I thought sounded nice.

Luckily it turns out that Italy has some great options for an aperitivo analcolico. As well as ‘virgin’ versions of well-known cocktails, there are bitters, sodas and other Italian-made soft drinks that you’re unlikely to find anywhere else.

They might not be quite as iconic as the Aperol Spritz, but they’re as thoroughly Italian – plus, effortlessly ordering one of these will make you look like a true local.

SanBittèr

San Pellegrino’s SanBittèr is one of the most famous non-alcoholic Italian drinks of all, with its highly-recognisable red packaging, often enjoyed in place of Campari cocktails because of its similar dark, ruby-red color.

This drink is carbonated with a slightly sweet, citrus flavor. The recipe is more complex than that of an orange or lemon soda, with notes of spice and herbs, making it ideal to pair with your aperitivo-hour snacks.

Crodino

Crodino looks a lot like an Aperol Spritz with its bright orange hue, and that’s not an accident: it’s said to have been created as a non-alcoholic alternative, and the zesty, slightly herbal taste is similar. It’s typically served the same way. in a round goblet glass over ice with a slice of orange: a Crodino Spritz.

The name comes from the town of Crodo in Piedmont, where it is still bottled today by the Campari group.

Chinotto

Citrusy Chinotto is an acquired taste for many, but it’s worth trying: it’s one of the classic Italian bitters and is said to have a long history, dating back to a recipe shared by Chinese sailors arriving on the Ligurian coast in the 1500s.

It may look a little like Coca Cola, but don’t let the appearance fool you.

(Photo by Eugene Gologursky /Getty Images via AFP)

Aranciata/Limonata

Aranciata is Italy’s version of an orange soda, but not as sugary, and it tastes like oranges. Its base is sparkling water with the addition of orange juice and sugar. There are various brands, but San Pellegrino’s is the most popular. It also sells a ‘bitter’ aranciata amaro, with even less sugar, more citrus tang and herbal notes, which might be more aperitivo-hour appropriate.

Limonata is, as you might guess, the Italian answer to lemonade. Again there are many versions out there but the fizzy San Pellegrino limonata is beloved for its strong, sweet-sour flavour and there’s nothing more refreshing on a hot summer’s day.

Cedrata

Cedrata is one of Italy’s oldest and best-known non-alcoholic drinks. It’s a refreshing, carbonated drink made from a large citrus fruit called a cedro, grown in southern Italy. It’s far less bitter than a Chinotto, but not as sweet as limonata.

The main producer of Cedrata today is Tassoni, and this is what you’re likely to get if you order it at a bar.

Gingerino

This is harder to find than the other aperitivi on the list and is seen as decidedly retro, but it’s worth trying if you can track it down.

It’s another orange-coloured, sparkling drink which became popular in Italy in the 1970s and is still sold today, though you’re more likely to find it in the north-east, close to Venice, where it’s produced.

You may be expecting it to taste a lot like ginger beer, and there are similarities, but it has stronger citrus notes and more bitterness.

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