Confectionery giant Ferrero SpA is set to acquire Jelly Belly, a family-owned brand known for its jellybeans, in a deal that is still being finalized. The Luxembourg-based company aims to expand its presence in the $3 billion gummy candy market. If the acquisition is successful, Ferrero will enter a market dominated by German brands Haribo and Mederer GmbH. Ferrara Candy Company, Ferrero’s US subsidiary, plans to retain all 800 employees currently working for Jelly Belly in California, Illinois, and Thailand. Jelly Belly executive vice president Jeff Brown is expected to become the CEO under Ferrara Candy Company.
Ferrero has a history of successful mergers and acquisitions, including its purchase of Wells, the company behind popular ice cream brands Blue Bunny and Halo Top. In addition, Ferrero acquired Nestlé USA’s confectionery business for $2.8 billion, granting it ownership of classic chocolate bars such as Baby Ruth and Crunch. Jelly Belly recently initiated an auction process with the help of Raymond James, marking its first sale process since 1980. The brand gained popularity under the leadership of chairman Herman Rowland, with even former US President Ronald Reagan known to indulge in the jellybeans. However, a dispute has arisen between Jelly Belly and candy maker David Klein, who continues to refer to himself as the founder of Jelly Belly despite the rebranding of the company in 2001. The two parties are currently embroiled in a legal battle over the rights to the phrase “Jelly Belly.”
The acquisition of Jelly Belly will allow Ferrero to diversify its candy offerings and enter the competitive gummy candy market. By expanding its product portfolio, Ferrero aims to challenge the dominance of Haribo and Mederer GmbH. With all 800 Jelly Belly employees expected to join Ferrero’s Ferrara Candy Company, the company signals its commitment to preserving jobs and integrating Jelly Belly’s talented team into its operations. Ferrero’s previous acquisitions, including Wells and Nestlé USA’s confectionery business, have showcased its ability to successfully incorporate new brands into its portfolio. The ongoing legal dispute between Jelly Belly and David Klein adds an interesting layer to the acquisition process and highlights the need for resolution in order for Ferrero to fully capitalize on the Jelly Belly brand. With its history of strategic M&A, Ferrero continues to solidify its position as a major player in the global confectionery industry.
