Nestlé Looks to Exit Ice Cream Business

The world’s largest food and drinks maker is in advanced talks to sell its remaining ice cream business as it sharpens its focus under new leadership.

Nestlé said it is in “advanced negotiations” to sell its remaining ice cream business to joint venture partner Froneri, sending shares up 3% in morning trade in Zurich. The move is part of a broader effort to boost sales and simplify operations under new CEO Philipp Navratil.

Navratil took over in September after former CEO Laurent Freixe was dismissed for failing to disclose a romantic relationship with a more junior colleague. The company said it will concentrate on coffee, petcare, nutrition, and food and snacks as its four core businesses.

Nestlé is cutting around 16,000 jobs worldwide as it works to reduce costs through automation and artificial intelligence. Efforts to improve performance have also been complicated by an infant formula recall involving traces of cereulide, a toxin that can cause vomiting and diarrhea.

“We are focusing our portfolio on four businesses, led by our strongest brands, with prioritized resources and a simplified organization,” Navratil said in a statement.

Why This Matters

  • Nestlé’s potential exit reflects a broader shift among global food companies to streamline portfolios.
  • The strategy signals a sharper focus on higher-growth and core categories.
  • The infant formula recall adds operational and reputational pressure during a leadership transition.

What’s Next

  • Negotiations with Froneri are expected to determine the final terms of the ice cream sale.
  • Cost-cutting efforts and job reductions are likely to continue as Nestlé reshapes operations.
  • Sales performance will reflect the impact of formula shortages and product returns this year.

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