Nestlé selling Rosanna and other Italian candy brands to Fida

Nestlé is selling six of its Italian confectionery brands including Rossana and Fondenti to Italian manufacturer Fida.

Expected to close by the end of June, the deal will see Asti-based Fida acquire the Rossana, Fondenti, Glacia, Fruttallegre, Lemoncella and Spicchi brands.

News of the sale comes three months after Nestlé announced it plans to develop its Italian chocolate pralines, Baci Perugina, into a global brand, pledging a total investment of €60m ($66m) over three years.

Nestlé said this funding will partly be used to modernize Italian production site Perugia San Sisto, where Rossana is currently produced.

Production moving to Asti

Production of Rosanna and the other brands in the deal will move to Fida’s site in Castagnole Lanze, Asti, where they will join existing Fida brands including Bonelle, Sanagola, Charms, Gocce, Tenerezze, Gnammy e le Irresistibili.

Fida, which was established in 1973 and had a turnover of around €15m last year, said it plans to invest in further developing the acquired brands.

Expanding product portfolio

Fida president and chief executive officer Eugenio Pinel said the businesses offered technological, production and sales synergies that would enable Fida to strengthen its market position by expanding its product portfolio.

We are ready to invest human and financial resources in their development,” he added.

Nestlé Italy head Leo Wencel said the company was pleased to have found a solid and experienced partner that will “continue to promote these brands in the best way and ensure a successful future”.

Seeking another Italian hit

Nestlé is hoping that, by focusing on Baci Perugina, it can create another Italian success like its S.Pellegrino mineral water brand.

Baci Perugina is already sold in foreign markets including Brazil, the US and Japan, with about a third of Baci Perugina produced at the Perugia San Sisto going to overseas markets.

In October 2015, Nestlé announced plans to roll out Swiss premium chocolate brand Cailler in international markets.