Nestle sells Nerds and Crunch among other top brands to Ferrero for £2bn

Nestle is to sell its US confectionery business to Ferrero Group for 2.8bn CHF (£2bn).

The Swiss food company said it was ridding itself of brands like Nerds, Butterfinger and Crunch to focus on other products.

The Italian Ferrero firm will become the US’s third biggest confectionery maker after this acquisition.

The deal is expected to go through by March 2018.

Ferrero said the brands would US customers “a broader offering of high-quality products”.

The US confectionery market is the largest in the world - worth about $8bn a year according to Ibis World.

The deal would allow it to “invest and innovate” in other areas where it saw future growth or where it was already a market leader, said Nestle’s chief executive Mark Schneider.

These include pet care, bottled water, coffee, frozen meals and infant nutrition.

Some analysts see the decision to get rid of the business, including Laffy Taffy, Chewy Gobstopper and BabyRuth, as another step by Nestle to focus on healthier products.

Since Mr Schneider took over last year, the Swiss business has bought companies that make vegetarian meals, vitamins and expensive coffee.

However, Nestle has said it is still wholly committed to its international chocolate brands. In 2017, it announced it was to open its first factory in Japan.

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