• About
  • Advertise
  • Careers
  • Write for us
  • Contact
  • Terms of service
No Result
View All Result
Saturday, March 6, 2021
THE MILLENNIAL SOURCE
  • World
  • US
  • Asia
  • Politics
  • Business
  • Profiles
  • Lifestyle
    • Food & Travel
    • Tech & Money
    • Health
    • Entertainment
  • Newsletter
TMS
No Result
View All Result
Home WORLD

Nestlé to sell its US ice cream business to Froneri

December 14, 2019
in WORLD
Reading Time: 2 minute read
Nestlé to sell its US ice cream business to Froneri
Share on FacebookShare on TwitterShare on Linkedin



Swiss company Nestlé will sell its US ice cream business to its joint venture with EU private-equity firm PAI Partners Froneri for $4 billion. 

Nestlé and PAI Partners merged Nestlé’s EU ice cream business in 20 countries and Pai Partners-owned R&R Ice Cream to create Froneri in 2016 – which is now one of the world’s largest ice cream companies.

Nestlé’s divestment

The deal is expected to be finalized in the first quarter of 2020, following regulatory approvals. 

This divestment initiative is the latest by CEO Mark Schneider who took over Nestlé in 2016. The company has been focusing on selling premium products in high-growth categories such as baby food and coffee, while offloading underperforming businesses such as lunch meat and chocolate.

In February, Nestlé put its Herta lunch meat business up for sale and it is still seeking buyers. The lunch meat business achieved nearly $700 million in sales in 2018. In January 2018, Nestlé sold its US confectionery business with brands like Butterfinger, Crunch and Baby Ruth to Italian manufacturer Ferrero for $2.8 billion. 

Schneider is said to be seeking to reorganize the company’s portfolio ahead of a possible initial public offering (IPO) in a few years. 

Froneri’s expansion plans 

Froneri currently manages Nestlé’s ice cream business in Europe, Latin America, Africa and Asia. The company recently acquired New Zealand ice cream company Tip Top and Nestlé’s ice cream business in Israel. “(We) are convinced that Froneri’s successful business model can be extended to the US market,” said Schneider.

With the sale of Nestlé’s US ice cream business, it is estimated that Froneri will generate sales of approximately $5.13 billion a year. This estimate is an increase from $3.01 billion from last year.  
“We’re very excited about taking Froneri into the US, and we hope to grow the business there with Nestlé’s fantastic brands like Häagen-Dazs and Drumstick,” said Froneri’s CEO, Ibrahim Najafi. The brand rights in the US to Häagen-Dazs will be fully owned by Froneri. Froneri is also seeking to acquire the non-US rights to the brand, which are currently owned by General Mills.

[article_ad]

Related

ShareTweetShare

Latest Posts

Spring 2021 events in Atlanta

Cultural can’t-miss Spring 2021 events in Atlanta

March 5, 2021
Black-owned independent bookstores

Black-owned independent bookstores in California

March 5, 2021
Quick and easy Indian meals

Quick and easy Indian meals to try during lockdown

March 5, 2021

Who is Letitia James?

March 5, 2021

Netflix to spend US$500 million to crack the Asian market

March 4, 2021

After raising US$8.3 billion in loans, what’s Tencent going to do next?

March 4, 2021

The best parks in Hong Kong to see cherry blossoms

March 4, 2021

Historic San Francisco restaurants you must visit

March 4, 2021

Black-owned bakeries in Atlanta for sweets and other treats

March 4, 2021
  • About
  • Advertise
  • Careers
  • Write for us
  • Contact
  • Terms of service

© 2020 The Millennial Source Ltd.

No Result
View All Result
  • World
  • US
  • Asia
  • Politics
  • Business
  • Profiles
  • Lifestyle
    • Food & Travel
    • Tech & Money
    • Health
    • Entertainment
  • Newsletter

© 2020 The Millennial Source Ltd.

Welcome Back!

Login to your account below

Forgotten Password?

Create New Account!

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Add New Playlist

We are using cookies to give you the best experience on our website.

You can find out more about which cookies we are using or switch them off in settings.

The Millennial Source
Powered by  GDPR Cookie Compliance
Privacy Overview

This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.

Strictly Necessary Cookies

Strictly Necessary Cookie should be enabled at all times so that we can save your preferences for cookie settings.

If you disable this cookie, we will not be able to save your preferences. This means that every time you visit this website you will need to enable or disable cookies again.