Nestle has said it intends to concentrate on four core pillars: coffee, pet care, nutrition, and snacks|Dornum72|CC BY-SA 3.0
Nestle announced yesterday that it is in “advanced negotiations” to offload its ice cream unit to joint venture partner Froneri.
UK-based Froneri acquired Nestle’s US ice cream brands, such as Haagen-Dazs and Drumstick, in a $4 billion deal in 2019.
In addition, the world’s biggest food and drinks maker saw its stock jump 3% after it reported Q4 organic sales growth of 4%, beating estimates.
Another conglomerate that recently separated its ice cream division is Unilever, which spun off its brands, like Magnum, Ben & Jerry’s, Cornetto, among others.
Nestle’s move
The Swiss consumer giant is making major changes under the new CEO, Philipp Navratil. It is aggressively streamlining operations and offloading brands to reverse years of underperformance.
It has said it intends to concentrate on four core pillars: coffee, pet care, nutrition, and snacks.
The pivot comes as the company navigates a challenging period. Its infant formula was recalled due to toxin contamination, sparking health investigations in Europe.
Its snacks category, which includes KitKat, faces a threat as weight-loss medications like Ozempic and Wegovy reshape consumer habits.
Nestle is currently cutting 16,000 jobs worldwide while leaning into AI to reduce overhead. In 2024, it also introduced a frozen food brand, Vital Pursuit, for those on GLP-1 drugs.