Analysis milk
Nestlé hands over last ice creams to Froneri
Food giant Nestlé is in the process of selling its remaining ice cream operations to British ice cream producer Froneri. These include businesses in Canada, Chile, Peru, Malaysia, China, and Thailand. This doesn't mean Nestlé is completely out of the ice cream business, as it will retain a 50% stake in Froneri.
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It was Nestlé CEO Philipp Navratil who announced at the presentation of the 2025 annual figures that the Swiss company wanted to sell its remaining ice cream interests to Froneri.
This quickly drew a comparison with Unilever. Last year, that company spun off its ice cream operations under the name The Magnum Ice Cream Company. This Amsterdam-based company is the world's largest ice cream company in terms of revenue, selling €7,9 billion worth of ice cream last year.
Froneri isn't there yet, as its turnover in 2024 was €5,5 billion. However, the company is growing rapidly and added Latvia's FoodUnion to its portfolio last year, and now Nestlé's remaining ice cream interests, which generate approximately €1,1 billion in revenue.
Froneri boasts not only high ambitions but also affluent shareholders. Nestlé has been the majority shareholder since the ice cream company's founding in 2016, holding 50% of the shares. It also managed most of its own ice cream operations. Nestlé is followed by the French private equity investment fund PAI. Until last year, PAI held the other 50%, when the Abu Dhabi-based investment fund ADIA acquired part of the stake. Nestlé is now transferring all its ice cream operations to Froneri and intends to focus on four (other) core businesses. This is all with the commitment to continue receiving attractive and increasing ice cream dividends.