Zurich — Nestlé is selling its US ice cream business that includes brands such as Haagen-Dazs to a joint venture with private equity firm PAI Partners for $4bn.
The move comes as Nestlé CEO Mark Schneider divests slower-growing businesses such as its US confectionery operations while focusing on pet food, water and coffee for growth. Competition in the US ice-cream market has intensified, as upstarts like Halo Top that offer healthier options eat away at bigger players’ market share. Unilever has responded with postmodern flavours such as Turmeric Chai & Cinnamon or Matcha & Fudge.
The ice cream deal also follows Nestlé’s decision to cut about 4,000 jobs linked to the direct delivery system of frozen pizza and ice cream to stores, and instead transition to a warehouse model to lower costs.Nestlé is “convinced that Froneri’s successful business model can be extended to the US market”, Schneider said in a statement.
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