Nestlé and R&R, an ice cream company based in the United Kingdom, have agreed to set up Froneri—a joint venture with sales of around CHF 2.7 billion in more than 20 countries employing about 15,000 people. Froneri will be headquartered in the United Kingdom and will operate primarily in Europe, the Middle East (excluding Israel), Argentina, Australia, Brazil, the Philippines, and South Africa.
The new company will combine Nestlé and R&R’s ice cream activities in the relevant countries and will include Nestlé’s European frozen food business (excluding pizza and retail frozen food in Italy), as well as its chilled dairy business in the Philippines. The transaction is subject to employee consultations and the approval of regulatory authorities. Financial details were not disclosed.
“This is an exciting growth opportunity in a dynamic category,” said Paul Bulcke, Nestlé CEO. “Froneri will capitalize on complementary strengths and innovation expertise, combining Nestlé’s strong and successful brands and experience in ‘out-of-home’ distribution with R&R’s competitive manufacturing model and significant presence in retail.”
Luis Cantarell, Nestlé executive vice president Europe, Middle East, and North Africa, will chair Froneri’s board of directors, which will be composed of three senior Nestlé executives and three senior executives appointed by private equity firm PAI Partners, R&R’s owner. Ibrahim Najafi will be Froneri CEO. Nestlé and PAI will have equal equity interests in the joint venture.