Nestlé makes strategic move to create global leader in ice cream

Nestlé makes strategic move to create global leader in ice cream

Must Read

List of Guaranty Trust Bank Sort Codes & Branches (with addresses) in Nigeria

The sort code is a number which usually identifies both the bank and the branch where an account is...

Spectranet Partners Zenith Insurance, Offers SpectraSure – a Protection Cover for MiFis and Modems Against Theft and Accidental Damage (Photos)

The partnership with Zenith Insurance will further help nurture the relationship Spectranet has with its subscribers. The partnership embodies...

Top 10 Most Expensive Universities In Nigeria

For many Nigerians, high-quality higher education is a luxury. There are many private universities who are known not only...
- Advertisement -
- Advertisement -

Nestlé announced today that it has reached an agreement to sell its U.S. ice cream business to Froneri, an ice cream focused joint venture Nestlé created in 2016 with PAI Partners, for a transaction value of USD 4 billion.

In 2016, Nestlé and PAI Partners merged Nestlé’s European ice cream business in 20 countries and PAI-owned R&R to create Froneri, one of the world’s largest ice cream companies.

With a portfolio of iconic brands, unparalleled ice cream knowledge and focus as well as an agile and entrepreneurial management style, Froneri has been able to achieve rapid sales and profit growth, steadily gaining market share and reaching a turnover of around CHF 2.9 billion in 2018.

Froneri, which already had operations in Europe, Latin America, Africa and Asia-Pacific will now have a strong presence in the U.S., the largest ice cream market in the world. The recent acquisitions of TipTop in New Zealand and Nestlé’s ice cream business in Israel have also increased Froneri’s growing global footprint.

Read:  National Examinations Council Statistics: 870,397 candidates sat for the examination in June/July 2016

Nestlé USA‘s successful ice cream business comes with a high-calibre management team, marketing, manufacturing and sales/distribution capabilities. In 2018, turnover was USD 1.8 billion. With brands like Häagen-Dazs, Drumstick and Outshine, the business commands leadership in key ice cream categories, notably super-premium.

Commenting on the transaction, Mark Schneider, Nestlé CEO, said: “The creation of Froneri has been a phenomenal success. We are now making this business our global strategic partner in ice cream and are convinced that Froneri’s successful business model can be extended to the U.S. market. With this transaction, we are taking a decisive step towards our goal of achieving global leadership in ice cream.”

Ibrahim Najafi, Froneri CEO, said: “This is another milestone acquisition for Froneri as we drive towards becoming the world’s best ice cream company. We’re delighted to be bringing such well-loved U.S. brands into the Froneri family. The acquisition is a testament to the strength and longevity of our relationship with Nestlé. This partnership and the continued support of PAI Partners will be essential to ensuring we continue to delight consumers with innovative, high-quality products in all markets.”

Frédéric Stévenin, Partner at PAI Partners, said: “We are excited to bring Nestlé’s stellar U.S. ice cream business to Froneri. This is a great opportunity for further growth, building on the expertise of the world’s leading pure-play ice cream company.”

The transaction is expected to close in the first quarter of 2020, following the completion of customary regulatory approvals. Nestlé will continue to manage its remaining ice cream businesses in Canada, Latin America and Asia as part of its current market structure.

- Advertisement -

Subscribe to BrandSpur Ng

Subscribe for latest updates. Signup to best of brands and business news, informed analysis and opinions among others that can propel you, your business or brand to greater heights.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Latest News

MDXi to Unveil First Locally Available Microsoft Stack Cloud Offering at Nerds Unite 2020 in Partnership with Microsoft and HPE

LAGOS, NIGERIA - EQS Newswire - February 20, 2020 - On February 21, 2020, MDXi, MainOne's data center subsidiary,...

#FixPolitics: Nigeria Operates Monopoly Democracy – Ezekwesili

Former Nigerian Minister of Education, Obiageli Ezekwesili, on Monday, said Nigeria has retrogressed because the political elites have perfected a “monopoly democracy” over the...

5G To Support More Than 10% of Global Mobile Connections by 2023

Cisco, global technology leader, has released a new annual Internet report which assesses digital transformation and provides information on the growth of internet users,...

eLaLiga Santander Is Presented In Partnership With The Support Of 34 LaLiga Santander And LaLiga SmartBank Clubs (Photos)

The Palacio de Neptuno in Madrid rolled out the red carpet to welcome the 34 clubs that will participate in this season’s eLaLiga Santander,...
%d bloggers like this: