Nestlé Considers Selling Stake in €15 B Ice Cream JV and Revamps Board
Nestlé is exploring cutting its stake in the €15 billion Froneri ice cream joint venture and may sell some fully-owned ice cream operations into the JV, with PAI Partners or ADIA as potential buyers. The company also nominated Thomas Jordan and Fatima Francisco to its board while shares trade near an eight-year low after a 40% drop from 2022 highs.
1. Ice Cream Footprint Reduction Plans
Nestlé’s new CEO is reviewing the company’s ice cream operations with a view to further reducing its direct exposure. Management is evaluating options to streamline operations and reallocate capital to higher-growth segments.
2. Froneri JV Stake Sale Options
The company is studying a potential sale of part or all of its Froneri stake, a joint venture valued at about €15 billion including debt. Options include selling directly to PAI Partners, ADIA or another investor, or contributing fully-owned operations into the JV.
3. Board Revamp Details
Nestlé nominated Thomas Jordan, former Swiss National Bank president, and Fatima Francisco, a senior Procter & Gamble executive, to its board ahead of the April AGM. The move aims to strengthen oversight, engagement and strategic decision-making.
4. Share Performance and Outlook
Nestlé shares have fallen roughly 40% from their 2022 peaks and sit near an eight-year low. Investors will closely watch full-year results later this week for guidance on divestments and the path to earnings recovery.