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Swiss food giant Nestlé plans to sell its US candy business.
According to a company statement, Nestlé may sell its US candy company as a strategic move. The company, which is known for its staple sweets such as Butterfinger, Crunch, and Baby Ruth, cited poor sales performance as an issue.
Overall, there was a 3.3% increase in sales in North America, but Information Resources, Incorporated (IRI) and Mintel confirmed that chocolate decreased in popularity in major markets such as the United States.
Other reports say that in the past year, people have switched from sweets to healthier snack alternatives. The market has also become more competitive as other products gained more popularity. As a result, Nestlé published a press release revealing its disappointing sales for 2016.
Business analysts noted that Nestlé’s strategy is part of its plan to shift to a more health-centered company image. This shift began in 2016 when the company appointed Mark Schneider, a former healthcare expert, as CEO.
In the past years, other packaged food companies have also suffered losses due to fluctuations in consumer preferences.
Like Nestlé, several food companies are now looking for strategies to keep their businesses afloat. Unilever is planning to sell its margarine business, while Reckitt Benckiser Group is selling its mustard business to pay a debt after buying another company. Italy’s Ferrero SpA, on the other hand, is continuously expanding through recent mergers, deals, and acquisition of other companies.