Nestlé announced it is in “advanced negotiations” to sell the entirety of its remaining ice cream business to Froneri, the joint venture it established with PAI Partners.
This move effectively marks Nestlé’s exit from direct, wholly owned ice cream operations, shifting the category entirely into its 50/50 partnership structure.
The “Final Exit” Strategy
While Nestlé has been offloading parts of its ice cream portfolio for a decade (including the $4 billion sale of its U.S. business in 2019), this latest announcement targets the last remaining holdouts.
- Target Markets: The sale involves operations in six key markets across Canada, Latin America, and Asia (including Malaysia and the Philippines) that were not previously under the Froneri umbrella.
- The “Distraction” Factor: CEO Philipp Navratil described the remaining ice cream assets—which generated roughly SFr1 billion ($1.2 billion) in 2025—as a “distraction” because they lacked the global scale necessary for Nestlé to drive growth independently.
- Froneri’s Role: By folding these assets into Froneri, Nestlé leverages the joint venture’s specialized expertise and scale. Froneri is currently valued at approximately €15 billion.
Key Brands Affected
The transfer includes some of the most recognizable names in the frozen aisle, ensuring they continue under the same branding but with new management:
- Häagen-Dazs (specific regional rights)
- Drumstick
- Mövenpick
- Maxibon
- Local Favorites: Including D’Onofrio (Peru), Parlour (Canada), and Lafrutta.
Broader Portfolio Reset
The ice cream exit is part of a “Portfolio Reset” under Navratil, who took over as CEO in late 2025. Nestlé is sharpening its focus on four core categories:
- Coffee (Nespresso, Nescafé)
- PetCare (Purina)
- Nutrition (Infant formula and health science)
- Food & Snacks (Maggi, KitKat)
| Other Major Changes | Status |
| Water Business | Nestlé plans to deconsolidate its water and premium beverage arm (Perrier, San Pellegrino) by 2027. |
| Vitamins/Supplements | Strategic review concluded; currently engaging potential buyers for private label brands. |
| Workforce | Implementing a plan to cut 16,000 jobs (6% of global staff) to save $1.3 billion annually by 2027. |
The “Ice Cream Exodus” Trend
Nestlé’s move mirrors a broader industry trend. In December 2025, its main rival Unilever completed the spin-off of its ice cream division (Magnum, Ben & Jerry’s) into the independent Magnum Ice Cream Company. Both giants are distancing themselves from the ice cream business due to its seasonal volatility, high cold-chain logistics costs, and shifting consumer health preferences (partially driven by the rise of GLP-1 weight-loss drugs).
