Nestle in Talks to Sell Ice Cream Business Amid Strategic Overhaul

Nestle is in advance talks to sell its remaining in-house ice cream businesses in several countries, marking another step in its ongoing strategy to streamline operations.

The company is negotiating the sale of its ice cream units in Canada, Chile, Peru, Malaysia, China, and Thailand to Froneri, its joint venture with European buyout firm PAI Partners.

These businesses generate around 1 billion Swiss francs ($1.3 billion) in annual sales and include popular brands such as KitKat ice cream and Coffee Crisp.

Nestle CEO Philipp Navratil explained, “There are times when we decide that focusing means exiting businesses,” adding that the ice cream division is “strong, but small, and it's a distraction for us.” This move follows Unilever’s spinoff of its Magnum Ice Cream business in the previous year.

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As part of Nestle’s broader reshaping, the company plans to focus more on its coffee, petcare, nutrition, and food and snacks divisions. The firm is also reviewing its underperforming vitamin and supplement brands, with potential buyers in sight, and intends to deconsolidate its water business by 2027.

Despite these changes, Nestle remains committed to its Froneri joint venture, in which it holds a 50 percent stake. With better-than-expected fourth-quarter sales growth, Nestle continues its restructuring efforts under Navratil, who recently implemented plans to cut 16,000 jobs as part of its transformation.

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Although much of the recent news is about Nestle selling its ice cream business and globally restructuring itself, it’s also important to recognize how Nestle's shift in broader strategy may indirectly impact its operations in India. India may witness changes in the availability of products offered by Nestle, innovation in new products offered by Nestle and potential new product opportunities for Nestlé to develop in India due to Nestle's refocusing strategy.