London: Nestlé is in advanced talks to sell its remaining in-house ice cream business, part of a broader plan to focus on core areas such as coffee, pet care, nutrition, and food and snacks. The move comes as CEO Philipp Navratil accelerates efforts to simplify the sprawling Swiss food giant.
The proposed sale, reportedly worth around 1 billion Swiss francs ($1.3 billion) in annual sales, covers ice cream operations in Canada, Chile, Peru, Malaysia, China, and Thailand, including brands such as KitKat ice cream and Coffee Crisp.
The units are expected to go to Froneri, the joint venture Nestlé co-owns with PAI Partners, which already manages the company’s European and US ice cream businesses.
Navratil emphasized the strategic rationale behind the move: “There are times when focusing means exiting businesses. The ice cream business is strong but small, and it’s a distraction for us.” The announcement follows Nestlé’s decision to shed underperforming vitamin and supplement brands and a plan to deconsolidate its water business from 2027.
Analysts have praised the strategy, noting that it allows the company to concentrate on higher-growth, cash-generative segments. Despite recent challenges, including the largest infant formula recall in recent history, Nestlé reported better-than-expected fourth-quarter sales growth.
Organic sales rose 4 percent, driven by price increases and internal volume growth. Navratil acknowledged the impact of recalls but expressed confidence that Nestlé’s reputation remains resilient. The CEO also highlighted the performance of the Gerber brand as a drag on market share, signaling potential future measures to revive its growth.
Looking ahead, Nestlé projects full-year organic sales growth of 3–4 percent, with margins expected to improve and internal growth to exceed last year’s results. The company’s strategic refocus underscores its determination to sharpen its portfolio and strengthen long-term profitability.
