Swiss food giant Nestle is exploring ways to scale back its involvement in the ice cream sector, according to a Bloomberg News report released Wednesday.
The multinational company is examining various strategies, including potentially reducing its ownership stake in Froneri, a joint venture ice cream business, sources familiar with the discussions told Bloomberg.
Another option under consideration involves transferring some of Nestle’s wholly-owned ice cream operations to the Froneri partnership, according to the report.
Neither Nestle nor Froneri provided comments when contacted by Reuters about the potential business changes.
Froneri operates as a partnership between investment firm PAI Partners and Nestle. The company received a significant financial boost in October when Goldman Sachs and Abu Dhabi Investment Authority invested in the venture, establishing its market value at 15 billion euros, equivalent to approximately $17.69 billion.
Should Nestle move forward with reducing its ownership percentage, PAI Partners might expand its control over Froneri. Alternatively, Nestle could transfer portions of its stake to other investors such as the Abu Dhabi Investment Authority, Bloomberg reported.
The discussions remain in preliminary stages, and there’s no guarantee any transaction will be completed, according to the report.
Froneri manufactures well-known ice cream products including Haagen-Dazs and Rowntree’s brands. The company faces competition from Magnum Ice Cream Company, which recently began operating independently following its separation from Unilever last year.
