By David Brooks • Business & Markets
Food giant Nestlé is moving ahead with plans to sell parts of its remaining ice-cream operations as part of a wider strategy to simplify the company’s global portfolio and focus on faster-growing product categories.
The Swiss-based manufacturer, known for brands spanning coffee, confectionery and pet nutrition, is reportedly in advanced discussions to transfer several international ice-cream businesses to its long-time joint-venture partner Froneri.
Executives say the move reflects a broader effort to streamline operations under new leadership while strengthening investment in core areas such as coffee, nutrition and pet care.
A Major Strategic Shift
Nestlé is reshaping its global portfolio as part of a wider corporate restructuring strategy.
According to company updates reported this week, Nestlé is considering the sale of ice-cream operations across several markets including Canada, Chile, Peru, China, Malaysia and Thailand.
The businesses involved are estimated to generate around one billion Swiss francs in annual sales, making them relatively small compared with Nestlé’s wider global operations.
Company leadership has suggested that while the ice-cream division remains successful, it no longer fits with the company’s long-term priorities.
Recent financial results showed steady organic growth, but executives are looking to simplify management structures and concentrate resources on categories delivering stronger margins.
The Role of Froneri
Nestlé already works closely with Froneri, one of the world’s largest ice-cream manufacturers.
The partnership was created in 2016 as a joint venture combining Nestlé’s frozen dessert operations in multiple international markets with those of private-equity firm PAI Partners.
Large-scale ice-cream manufacturing is already managed globally through joint ventures such as Froneri.
Over recent years, Nestlé has gradually shifted responsibility for many ice-cream brands into the partnership, including previous sales of U.S. operations.
Industry analysts say expanding Froneri’s role could allow Nestlé to maintain a financial interest in the category while reducing day-to-day operational complexity.
Froneri already produces a wide range of frozen dessert products internationally and operates major manufacturing facilities across Europe and North America.
Why Nestlé Is Restructuring
The planned sale forms part of a broader corporate overhaul introduced by CEO Philipp Navratil following a period of economic pressure and shifting consumer habits.
Executives have identified four priority areas:
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Coffee products
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Pet care
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Nutrition and health science
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Food and snack brands
The company is also reviewing other assets, including parts of its water and vitamin businesses, as it looks to sharpen focus on higher-growth categories.
Analysts say global food companies are increasingly simplifying portfolios to adapt to changing consumer demand and rising production costs.
Challenges Facing the Food Giant
The company plans to concentrate investment on categories including coffee and nutrition products.
Nestlé’s restructuring comes amid wider industry pressures, including currency fluctuations, supply-chain costs and competition from private-label supermarket brands.
The company has also faced operational challenges, including product recalls affecting parts of its infant-nutrition division earlier this year.
Despite those setbacks, Nestlé reported stronger-than-expected sales growth in recent financial updates, suggesting demand for many of its core products remains resilient.
Executives believe simplifying the organisation could help improve efficiency and long-term profitability.
What Happens Next
Negotiations around the ice-cream sale are ongoing, and no final agreement has yet been announced.
If completed, the move would represent another step in Nestlé’s gradual withdrawal from direct ownership of frozen dessert manufacturing.
Industry observers note the strategy mirrors broader trends among multinational consumer goods companies seeking to concentrate on fewer, stronger global brands.
For consumers, the transition is unlikely to lead to immediate product changes, as existing brands would continue to be manufactured through established partnerships.
Key Points at a Glance
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Nestlé is in advanced talks to sell parts of its remaining ice-cream business
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The operations involved span several international markets
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Joint-venture partner Froneri is expected to play a central role
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The move supports a wider strategy focused on coffee, pet care and nutrition
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Negotiations remain ongoing with no final deal confirmed
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