(Yicai Global) Jan. 22 -- Food and drinks giant Nestle SA has agreed to sell its US confectionery business to Italy's Ferrero SpA for USD2.8 billion as it looks to give itself a healthier image and win over changing tastes in the world's largest economy.

Swiss-based Nestle's American sweets unit makes up about 3 percent of the company's sales in the country, and though it lags behind The Hershey Co. and Mars Inc., still owns several best-selling chocolate brands and pulled in about USD900 million in 2016. However, none of these factors affected Chief Executive Mark Schneider's decision to sell.

The sale will see the confectionery unit find a new home in which it will thrive, Schneider said. The move also allows Nestle to invest and innovate across a range of areas where they see strong future growth, such as pet care, bottled water, coffee, frozen meals and infant nutrition.

The firm has made several moves into the nutritional and medical sector as it looks to provide a healthier product portfolio to cater to changing American tastes and ramp up returns to shareholders.

It acquired Atrium Innovations, a leading US nutritional supplement maker, for USD2.3 billion in cash last month. The purchase added a range of products to Nestle's range, including probiotics, plant-based protein supplements and multi-vitamin products.

Nestle is also planning to buy the consumer health unit of Merck KGaA for about USD5 billion, which will extend its products to include folic acid and vitamins. Nestle beat out competition from Reckitt Benckiser Group Plc and other firms to win the bid, several foreign media outlets reported.