Nutella Maker Ferrero Wants to Buy Nestle’s Chocolate Business - Eater

The first Big Food merger of 2018 is poised to be a sweet one: Italian chocolate maker Ferrero SpA is reportedly in talks to buy Nestle’s U.S. candy business for $2.8 billion, according to Bloomberg. In addition to its namesake foil-wrapped truffles, Ferrero Rocher also makes Nutella and Tic Tacs.

Nestle’s confectionery division includes numerous iconic candy bars such as Butterfinger, Baby Ruth, Kit Kat, and Nestle Crunch. Though the world’s biggest food and beverage brand has long been synonymous with chocolate in the U.S., it’s pivoting away from sweets as sales of sugary products have declined in recent years. Nestle has instead poured its money into indie coffee brands, acquiring a majority stake in Bay Area-based Blue Bottle last year and also snapping up Austin-based Chameleon Cold Brew.

Bloomberg notes that Nestle rival Hershey has also made moves to diversify its business, recently coughing up more than $900 million to buy the snack brand that produces SkinnyPop popcorn. Falling sales have plagued the soda industry, too, with companies like Coca-Cola investing in less-sugary options like Topo Chico mineral water.

A Ferrero-Nestle merger could certainly present some intriguing chocolate possibilities: Nutella Kit Kats? Butterfinger truffles? A deal could be finalized as soon as Sunday, per Bloomberg’s source.

Ferrero Near Deal to Buy Nestle’s U.S. Chocolate Unit [Bloomberg]

Nestle Wants Out of the American Chocolate Industry [E]

Nestle Buys Hipster Coffee Brand Blue Bottle [E]

https://www.eater.com/2018/1/12/16882656/nestle-sale-ferrero-rocher-chocolate