Nestlé and Ferrero Shape Up US Product Portfolios

Nestlé USA, whose parent company is based in Switzerland, just announced the sale of its U.S. candy products to Ferrero. Included are the familiar brands shown above.

Not included are the iconic Toll House products and even more iconic KitKat chocolate products. Interestingly, Nestlé doesn't make or market the KitKat bars you buy in U.S. markets--those are made and marketed by Hershey.

This acquisition puts Ferrero into the number-three slot among US candy marketers, behind Mars and Hershey. Ferrero has actually been on a buying spree, picking up Ferrara Candy and Fannie May in 2017. Ferrero already owns well-known brands like Nutella and TicTac, marketed for decades and popular with loyal customers. 

Both Nestlé and Ferrero view their product portfolios from a global perspective. What sells well and where? Where and why are products not just popular but profitable? And what are the long-term prospects for growth? Nestlé is reshaping its portfolio as it sets profit goals and examines consumption and buying trends. Ferrero is looking ahead to production expansion and technological innovation being drivers of sustainable growth.