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Nestle sells its business of ice-creams in the United States

The leading food maker in the world, Nestle has come to an agreement where it is going to sell its business of ice-cream in the United States to a joint venture named Froneri which was a joint venture it had created in the year 2016 with PAI partners that is a private-equity firm.

Nestle is going to receive an amount of $4 billion for its contributions to the brands of Dreyer’s and Drumstick and Haagen-Dazs to Froneri.

Mark Schneider who is the Chief Executive of Nestle has called Froneri a huge success while the observers had seen this this spin-off as one more step by the company from Switzerland to hive off the slow growing business.

Earlier in the year, Nestle had sold their skin-health operations for an amount of $10 billion and their life-insurance operations for an amount of $1.5 billion.

It has also been facing an uneasy road in the ice-cream markets of Untied States as the new players like Halo Top are serving alternatives which are a lot healthier.

The leader globally, Unilever has however managed to stay fresh by the introduction of high-protein and probiotic brands with names like Turmeric Chai & Cinnamon and Culture Rebublick.

The competition has made sure that there is a reduction in the share of Nestle in the current decade from over 19% to 15 % while Unilever has gone up from 18 percent to 21 percent.

Though this deal still has not affected the business of ice-cream for Nestle in Canada, Asia and also Latin America however this is also thought to not last long as the CEO prefers products like bottled water and coffee.

Kelly Rivera
Kelly Rivera Author
Lead Editor At Global Newspaper 24

Kelly has been one of the most knowledgeable personalities in the Global Newspaper 24’s Business section team. While she has completed MBA in Finance Degree, she has always demonstrated her core knowledge in business management and affection toward the freedom of expression through words by crafting superlative news reports for all the readers of the Global Newspaper 24 platform. At present, Kelly works as the Head of the Business Department and is responsible for checking all the news reports for readability while adhering to the quality standards of Global Newspaper 24. Kelly is a super-active personality that loves to write news reports on various topics such as mergers & acquisitions, latest product launches, and major business events.

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