New Developments:
- In a strategic move to boost sales, Nestlé is selling off its remaining ice cream assets as part of a broader review of its business operations.
- Nestlé’s international ice cream business will be gradually transferred to Froneri, as stated by Nestlé CEO Philipp Navratil in a recent earnings call. Froneri, a joint venture between Nestlé and PAI Partners, previously acquired Nestlé’s U.S. ice cream business for $4 billion in 2019.
- Navratil described the remaining ice cream holdings as “strong but small,” emphasizing that the focus is shifting towards more lucrative growth opportunities.
Insightful Analysis:
Nestlé’s new CEO has pledged to streamline the company and prioritize its core brands. In addition to ice cream, Nestlé is also considering divesting its vitamin business and seeking a partner for its water portfolio, which includes Sanpellegrino and Perrier.
Following Unilever’s lead, Nestlé is not alone in exiting the ice cream market to drive innovation and refocus on other business segments.
Nestlé regularly evaluates its portfolio, with recent transactions including the sale of the Herta Foods frankfurter line.
Navratil emphasized the importance of maintaining focus on core business areas to maximize shareholder value and drive sustainable growth.
Despite a decline in overall sales in 2025, Nestlé saw an increase in organic growth, signaling positive momentum under Navratil’s leadership.
Since taking the helm, Navratil has implemented significant cost-saving measures, including a workforce reduction to drive operational efficiency.
While exploring exits from certain sectors, Nestlé remains committed to its frozen foods segment, highlighting its strategic importance in the U.S. market.
Navratil emphasized the company’s dedication to innovation and business enhancement to ensure long-term value creation.