Gifting retailer sells luxury sweets line, but keeps brand connection

1-800-Flowers.com has officially sold its premium chocolates business.



The gifting retailer closed on the sale of Fannie May Confections Brands — including its subsidiaries Fannie May Confections and Harry London Candies — to Ferrero International on Tuesday, May 30. The deal, which is valued at $115.0 million, entitles Ferrero to all operations of Fannie May, the confectioner’s manufacturing facility in Ohio, and two warehouse and distribution facilities, located in Ohio and Illinois.



Fannie May will operate as a standalone entity under the Ferrero Group, with support from Ferrero U.S.A., as needed. However, Ferrero U.S.A. will maintain its headquarters in Parsippany, New Jersey, and its assembly and packaging facility in Somerset, New Jersey.



There is an upside for 1-800-Flowers.com. The gifting retailer has entered into a strategic commercial partnership that provides 1-800-Flowers.com with distribution rights for Fannie May, Harry London and certain Ferrero confectionery products in its e-commerce channels, as well as in gift baskets sold into the club, food, drug and mass channels in the United States.



“The sale of Fannie May further strengthens our balance sheet while concurrently reducing the working capital requirements in our business model,” said Chris McCann, CEO of 1-800-Flowers.com.



He added, “Importantly, the strategic commercial agreement we have signed with Ferrero will enable us to continue offering the iconic Fannie May and Harry London chocolate brands across our e-commerce and wholesale gift basket channels, while also adding some of Ferrero’s chocolate confectionery brands, including Nutella, Ferrero Rocher and Raffaello, to our product offering.”