Nestlé to sells six small confectionery brands in New Zealand

The brands include Mackintosh’s toffees, Black Knight licorice, Heards hard candies and Fabulicious Red Licorice as well as other Oceania brands Life Savers and Oddfellows.

“Following a review of Nestlé’s confectionery business in Australia and New Zealand, Nestlé is looking to focus on its major chocolate, baking and medicated lozenge brands in New Zealand,” Nestlé said in a statement. It did not disclose the price of the deal. The company said up to 55 jobs out of a total of over 270 would be lost at its Wiri factory that will reduce output to focus on culinary products, such as Maggi soups.

In January 2018, Nestlé already sold its U.S. confectionery business to Italy’s Ferrero for USD 2.8 bn, and is under shareholder pressure to divest more. Activist shareholder Third Point is publicly pushing for a faster overhaul at the company aimed at improving sales and profits at the Swiss company grappling with weakened demand for packaged food.