Nestlé Hands Over US Ice Cream Business

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Swiss multinational food and beverage company Nestlé is turning over its ice cream enterprise in the United States to UK-based ice cream manufacturer Froneri. The deal, which puts brands like Nestlé Ice Cream and Häagen-Dazs / ˈhɑːɡəndæs / under Froneri’s management, costs $4 billion. The acquisition makes Froneri the second largest ice cream manufacturer in the world next to Unilever, which has Ben & Jerry’s and Selecta under its portfolio. Froneri has been in the ice cream industry since 1932 but under a different name. It became known as it is today when in 2016, it gained control over the combined products of Nestlé in Europe and R&R—an England-based ice cream manufacturer. Since its establishment, Froneri has expanded its reach in Europe, Latin America, Africa, and Asia-Pacific. With its latest acquisition, the ice cream manufacturer gains a wider market and a stronger global presence. Nestlé said that it will continue managing its ice cream businesses in Canada, Latin America, and Asia. However, it is starting to restructure its business by focusing on products that are performing well in terms of sales, particularly baby food and coffee. According to sources, Nestlé is under pressure to deal with the changing demands of customers who are becoming more health-conscious. Thus, it is gradually slashing its sales of sugary and fatty foods like ice cream. A business analyst also said that the recent deal between Nestlé and Froneri shows the former’s efforts to transform its product portfolio by giving up its underperforming businesses.

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