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.
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