Nestle has entered into an agreement to sell its Italian confectionery brands, including Rossana and Fluxes, to Italian candy maker Fida.
The deal, for an undisclosed sum, will also see Fida take control of the Glacia, Fruttallegre and Lemoncella e Spicchi brands.
The will brands join Fida’s stable of confectionery products, with brands including Bonelle, Sanagola and Charms. Fida holds a 3.5% share of the Italian confectionery market, with 2015 sales totalling approximately EUR15m (US$16.9m).
Fida president and CEO Eugenio Pinel said the deal would enable the company to “strengthen” its market position. The group has identified “significant” synergies in technology, production and sales, he added.
Announcing the disposal, Nestle stressed Fida’s ownership of Rossana will “enhance” the iconic 90-year-old brand. Fida said it plans to invest “human and financial resources” in the development of the brands.
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As part of that move, Nestle said it would invest in advancing chocolate production at its Italian San Sisto factory, where the hard candy brands are produced.
However, announcing the deal with Fida, Nestle revealed production will be transferred to the Italian firm’s factory in Castagnole delle Lanze in Asti following the completion of the transcation between the two companies.
Leo Wencel, the head of Nestle’s business in Italy, said the company had been “impressed” with the strength of recent consumer sentiment in support of the Rossana brand. The company was therefore “pleased” to sell the business to a “solid and experienced” confectioner in order to ensure a “successful future” for the brand.
The deal is expected to close by the end of the month.