Nestlé has unveiled plans to sell its remaining ice cream business as it sets its sights on trimming its sprawling portfolio into four divisions.
The Swiss consumer giant confirmed it would sell its ice cream business, which includes brands like Maxibon, to Froneri, an ice cream joint venture with private equity firm PAI Partners.
The talks come as Nestlé also starts the process for a potential sale of its waters and drinks business, which makes San Pellegrino and Perrier.
It said the division, reportedly worth £4.4billion, was expected ‘to be deconsolidated from 2027’.
The moves are part of a strategy from recently-appointed chief executive Philipp Navratil to drive a turnaround amid pressure from shareholders.
Navratil plans to focus the group’s efforts on its coffee, petcare, food and snacks and nutrition arms.
In October 2025, the business announced plans to cut 16,000 jobs over the next two years, as Navratil pushes to focus on products with the ‘highest potential returns’.
Plans: Philipp Navratil, the boss of Nestlé is cutting 16,000 job globally
The Swiss company must ‘change faster’ to keep pace with a changing world and adopt a ‘performance mindset’ that does not accept losing market share to rivals, Navratil said in October.
It follows Unilever’s sale of the Magnum Ice Cream Company in December. While Unilever still owns a 20 per cent stake in the firm, it plans to sell down to zero per cent over the next five years.
In an annual earnings update on Thursday, Nestlé said that underlying trading operating profit dipped 8.4 per cent to £13.8billion in 2025.
Nestlé said it had been impacted by an increase in costs linked to restructuring and other trading items, with the rise largely linked to impairments, litigation and the allowance for inventory write-offs due to the infant formula recall.
This includes a £71.9million impact on its sales from baby formula recalls.
In January, Nestlé started a precautionary product recall of a number of batches of 12 SMA Infant Formula and Follow-On Formula products in the UK due to the possible presence of cereulide.
The formula recall was also linked to an inventory write-off worth £105.5million.
The consumer goods giant said the formula recall had been completed, adding that it was ‘now focused on replenishing stocks’, having restarted production at its formula factories.
Nestlé said its sales fell 2 per cent last year after higher sales were offset by currency exchange rates.
Navratil said: ‘I am encouraged by our performance during 2025, which reflects the targeted actions we have taken in a difficult external environment.
‘We are accelerating our strategy. We are focusing our portfolio on four businesses, led by our strongest brands, with prioritised resources and a simplified organisation.’
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Nestlé to offload ice cream division as boss looks to slim down business