BOSSES at Nestl are hoping to grab back the U.S. market for KitKat, it was disclosed today.

Until now the York-manufactured chocolate bar has been under the control of Nestl all over the world - except in the U.S.

Back in 1970 the York-based Rowntree organisation sold the licence for production and marketing in the U.S. to Hershey Foods and ever since Nestl took over Rowntree it has vowed to win back control.

Now the possibility has opened up as the Hershey Foods Corporation contemplates seeking a new buyer.

Speculation that Nestl has pitched $11 billion for the Hershey empire today brought this reaction from Francois Xavier Perroud, head of Nestle's corporate communications in Vevy, Switzerland: "We don't comment on market fantasies."

But he said that should Hershey be sold to any buyer - and the prospect had raised controversy in the U.S. - Nestl stood to gain.

"As part of the Rowntree deal, the licensing of KitKat in the U.S. will revert to us in the event of Hershey changing hands.

"From the beginning we said we would vigorously pursue the goal of getting our U.S. licence back in order to manufacture and distribute KitKat there, which is why we are following this with a great deal of interest."

Meanwhile Nestl Rowntree today turned the lawn red outside its reception in Wigginton Road, to celebrate the launch of a new KitKat Red promotion.

It is the firm's biggest-ever promotion. Finders of 10,000 red Kit Kats will each win £20, with a chance to win a further million free Kit Kats. It will be supported by a £1.9 million TV campaign starting on September 9.

Updated: 11:52 Wednesday, August 28, 2002