Nestle is considering selling off some of his brands. Around six months ago, the world’s largest food and beverage company – possibly most well-known and loved for its candy collection – discussed this as one of its possible strategic options.
Said to be valued at between $2 and $2.5 billion, the U.S. entity of the Swiss-originated company has since then received bids from The Ferrero Group (best-known for its Ferrero Rocher bonbons and Nutella spread) and The Hershey Co. (one of the world’s largest chocolate manufacturers).
Question is of course – like with many business transactions – which of these two giants is prepared to put up more money. Right now it looks like Ferrero is willing to be “more aggressive” in its bidding.
Of course, the candy-snack market has evolved and somewhat changed over the years, as people seek out more “good for you” and less fattening snacks like popcorn. But still, as executive director of food and consumer trends at investment bank Rabobank Nicholas Freeday pointed out: “Candy is too ingrained in our culture for it not to be an interesting category for investors,” indicating that whoever does win the bidding war for Nestle will certainly get a ‘sweet deal.’