Nestle sells US ice cream business to Froneri joint venture
Nestlé and PAI Partners are expanding their existing ice cream joint venture. The Swiss food company is selling its American ice cream business to Froneri for 4 billion dollars, according to a media release issued on Wednesday evening.
Photo by Alex Jones on Unsplash
This will create one of the largest ice cream suppliers in the world. The annual turnover of the combined business is expected to reach around 4 billion dollars, as a Nestlé spokesman told the Swiss news agency AWP.
The transaction is expected to be completed in the first quarter of 2020.
Nestlé and PAI Partners founded Froneri in 2016, with PAI contributing R&R. Since then, Froneri has achieved rapid sales and profit growth and continuously gained market share. The joint venture is primarily active in Europe, but is also represented in New Zealand, Latin America, Israel and South Africa.
Nestlé USA's ice cream business achieved sales of $1.8 billion in 2018. With brands such as Häagen-Dazs, Drumstick and Outshine they are leaders in important ice cream categories, especially in the super premium sector. In addition, the company has excellent marketing, production and sales capacities.
"The creation of Froneri was a phenomenal success", Nestlé CEO Mark Schneider is quoted in the communication. "The company has become our global strategic ice-cream partner and now we will transfer Froneri's successful business model to the USA.
The remaining Nestlé ice cream business in Canada, Latin America and Asia is to be continued within the current market structure./yr/jb/AWP/fba (dpa)
Note: This article has been translated using a computer system without human intervention. LUMITOS offers these automatic translations to present a wider range of current news. Since this article has been translated with automatic translation, it is possible that it contains errors in vocabulary, syntax or grammar. The original article in German can be found here.
Other news from the department business & finance
