Nestlé SA is exploring ways to reduce its presence in the ice cream sector as new CEO Philipp Navratil reviews the company’s broad operations, according to sources. The Swiss food giant is evaluating options including trimming its stake in Froneri, an ice cream joint venture with private equity firm PAI Partners that owns brands like Häagen-Dazs and Mövenpick. Nestlé may also sell some of its fully-owned ice cream units to Froneri.
Discussions are ongoing, and no deal is guaranteed. PAI could increase its stake if Nestlé sells, or the Swiss group could sell part of Froneri to another investor such as the Abu Dhabi Investment Authority (ADIA). Nestlé and ADIA declined to comment, while PAI did not respond.
Once one of the world’s largest ice cream producers, Nestlé now sells ice cream mainly outside Froneri’s scope. Last year, PAI raised billions to maintain control of Froneri, with ADIA joining as a minority investor in a deal valuing the firm at about €15 billion (US$17.7 billion or RM69.18 billion) including debt.
Nestlé shares have fallen roughly 40% from their 2022 peak, nearing an eight-year low, while competitors Danone SA and Unilever Plc have risen more than 20% over the same period.
Board Shake-Up
Amid an infant formula contamination crisis affecting the industry, Nestlé also announced changes to its board ahead of full-year results. Thomas Jordan, former president of the Swiss National Bank, and Fatima Francisco, a senior executive at Procter & Gamble, have been nominated to the board and will stand for election at the company’s annual general meeting in April.
Chair Pablo Isla said the revamp aims to boost board engagement, enhance oversight, and improve decision-making. Isla became board chair last year following a governance crisis that led to the departure of former CEO Laurent Freixe and long-time chairman Paul Bulcke.
Jordan brings financial expertise and Swiss institutional knowledge, having overseen major events like the removal of the Swiss franc cap in 2015 and Credit Suisse’s collapse in 2023. Francisco adds consumer goods experience while improving gender diversity on the board.
