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3w ago

Nestle in Advanced Talks to Sell Remaining In‑House Ice Cream to Froneri

The talks reflect CEO Philipp Navratil’s push to streamline the portfolio following profit pressure from infant formula recalls.

FILE PHOTO: The Nestle logo is seen at one of its plants in Konolfingen, Switzerland, September 28, 2020. REUTERS/Arnd Wiegmann/File Photo
A machine places lids on tubs of Giovanni's ice cream on the production line at the R&R Ice Cream Plc factory in Leeming Bar, U.K., on October 14, 2015.
An employee fills an ice cream cone at the Häagen-Dazs shop opening in Sylt, Germany in 2015.
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Overview

  • Nestle confirmed negotiations to transfer its last company-run ice cream units to Froneri, its joint venture with PAI Partners.
  • The portfolio under discussion generates about 1 billion Swiss francs in annual sales across Canada, Chile, Peru, Malaysia and Thailand, including products like KitKat ice cream and Coffee Crisp.
  • Nestle said it does not plan to exit the Froneri joint venture, where it holds a 50% stake, and Froneri was valued around €15 billion after new investment in October.
  • The potential sale aligns with Nestle’s plan to focus on coffee, petcare, nutrition, and food and snacks, alongside previously announced cuts of roughly 16,000 jobs.
  • Nestle reported a 75 million Swiss franc hit to underlying profits and a 110 million Swiss franc inventory write-off from infant formula recalls, and its shares rose about 3% after the update as talks continue without a final agreement.