Nestlé Italia has agreed a deal to sell six of its confectionery brands – including Rossana – to Italian sweet company Fida.
As well as Rossana, the brands being sold by Nestlé Italia are Fluxes, Glacia, Fruttallegre, Lemoncella and Spicchi. Their production will move from Nestlé’s Perugina site in Perugia, where they are currently made, to Fida’s plant in Castagnole delle Lanze – 30 miles southeast of Turin.
The acquisition will further strengthen Fida’s position in the family confectionery market and will provide the best possible opportunity to enhance the Rossana brand, Nestlé said.
Fida currently controls around 3.5% of Italy’s family candy market and, in 2015, generated sales of approximately €15 million.
Leo Wencel, head of market for the Nestlé Group in Italy, commented: “We were impressed by the warmth and affection shown by consumers against Rossana in recent months. We are therefore particularly pleased to have found a solid and experienced partner in the field that, we are sure, will continue to promote these brands in the best way and ensure a successful future.”
Fida president and chief executive officer Eugenio Pinel added: “We are proud of the agreement reached today, which – thanks to significant technological synergies, production and sales – allows us to strengthen our market position by expanding our product portfolio with a much-loved, historical brand.
“We are ready to invest human and financial resources in its development and empowerment.”
The transaction is expected to close by the end of the month.
It forms part of Nestlé’s €60 million plan to strengthen Perugina’s position inside Italy and increase the number of export opportunities to overseas markets. Part of that plan, announced by FoodBev in March, includes a €15 million investment in strengthening its existing San Sisto factory in Perugia, modernising the facility and reaffirming its position as one of the foremost centres of excellence for chocolate production within the Nestlé Group.
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