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Thomasnet Headline: “Nestlé is Out of the Candy Business.”

Throughout January, Ferrero Rocher made headlines for the acquisition of Nestlé’s U.S. Confectionary Business.

Well, the Italian company Ferrero Rocher has been part of the U.S. marketplace since the sixties when they introduce the now iconic Tic Tac® breath mints to the U.S.

Now, with the acquisition of Nestlé’s candy, Ferrero Rocher will become the third largest chocolate company in the United States.

Yes, Ferrero Rocher becomes the new parents of the famous Baby Ruth candy bar, Reece’s peanut butter cups plus, other well-known candy brands. You know them well as the irresistible rack of goodies in front of us at our grocery checkout.

In comparison, Nestlés is branching out in a very different industry. According to a Washington Post article, Nestlé is expanding with a healthier option. They recently purchased a vitamin business.

So it seems, expansion through diversification is not an unfamiliar strategy for Nestlé, and neither is the focus on nutrition, health, or pharmaceuticals. When you examine their history, you find it’s part of their DNA.

  • In 1969 Nestlé buys a stake in the French waters brand Vittel, their entry to the mineral waters business.
  • In 1974 Nestlé went beyond the food and drink industry as they become a shareholder in L’Oréal cosmetic company.
  • Diversification continues in 1977, with the purchase of Alcon Laboratories the U.S. pharmaceutical and ophthalmic products manufacturer.
  • Although food related, in 2000 an eco-friendly Nestlé launches The Sustainable Agricultural Initiative Nestlé (SAIN); promoting collaboration with local farmers, and ensuring sustainability.

Given the track record, we expect the Nestlé brand to continue to surpass new milestones in growth and research as it did with the established Nestlé Institute of Health Sciences in 2011 to the this year’s purchase of the vitamin business.

 


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