Which Companies Are Showing Interest in Nestle's U.S. Candy Business?
By Abbey Lewis on Aug. 25, 2017VEVEY, Switzerland -- Since Nestle announced in June that it was considering the sale of its U.S. candy business, Wall Street and the media have been speculating about a potential buyer for the renowned confectioner. Several manufacturers have been said to be in the running, but few details had been released about actual buyers—until recently.
Two leading manufacturers have indicated their interest in participating in the auction for the manufacturer behind chocolate brands such as Butterfinger, Baby Ruth, Crunch, 100 Grand, Skinny Cow, Raisinets, Chunky, Oh Henry! and Sno-Caps, as well as nonchocolate brands such as SweeTarts, Laffy Taffy, Nerds, Fun Dip, Pixy Stix, Gobstopper, Bottle Caps, Spree and Runts.
Click through to read more about the potential buyers of Nestle's U.S. candy business, as well as some speculation about other possible, yet unconfirmed, acquirers ...
Ferrara Candy Co.
Ferrara Candy Co., home to Lemonheads, Now & Later and Trolli, among others, is said to be preparing to participate in the auction for Nestle's U.S. confectionary business, according to a Reuters report. The potential deal would add chocolate brands such as Butterfinger and Baby Ruth to Oakbrook Terrace, Ill.-based Ferrara's range of nonchocolate candy offerings.
Leaf Brands
Leaf Brands, the Newport Beach, Calif.-based manufacturer of iconic candy and snack brands such as Astro Pops, Wacky Wafers, tart n' tinys and Hydrox Cookies, has also thrown its hat in the ring for Nestle's U.S. candy business. Though it admits it is one of the smaller participants in the auction, it does currently manufacturer two of the original Nestle/Wonka brands: tart n' tinys and Wacky Wafers.
"We spent many years rolling the products back to their original designs after many failed versions by Nestle, and during that period we've had the opportunity to interact with many of the current and past Nestle confectionary employees, which has helped us to understand their business," said Ellia Kassoff, Leaf's CEO. "We know what it will take to revive and grow the Nestle business in the United States and feel there is tremendous opportunity for us to partner with other investors to make the new company the most innovative, creative and profitable company in the U.S. confectionary space."
Mondelez International
While it is purely speculative, Mondelez, East Hanover, N.J., has been cited as a possible bidder, according to recent notes by stock analysts from Jefferies, Morgan Stanley and Bloomberg Intelligence.
But the company doesn't need M&A to deliver growth, according to Mondelez International's CEO Irene Rosenfeld, who told The Bottom Line the company isn't interested: "We are quite satisfied with the portfolio we have today."
pladis
Also speculative, pladis is another company worth keeping an eye on. The company brought Godiva Chocolatier, Ulker, United Biscuits and DeMet’s Candy Co. together to form a global company in June 2016, and it is aiming to be the fastest-growing company in its sector, it said in a release.
"We have over 300 years of heritage, which differentiates us from other global snack players," said Brian Blanchard, managing director of pladis North America. "Our portfolio is made up of some of the world’s most established brands and we’ve been exploring cross-category innovation to offer the best products to consumers, such as bite-sized formats, which are growing year on year."