Nestlé and UK based ice cream company R&R have agreed to form a joint venture that will sell ice cream and frozen food in over 20 countries including Australia.
The 50/50 joint will be called Froneri and will be headquartered in the UK. As Reuters reports, there are plans to eventually list the company on the London Stock Exchange.
Apart from Australia, Froneri will operate primarily in Europe, the Middle East (excluding Israel), Argentina, 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.
“We are doing this in order to reinforce our positions to compete in a marketplace in a revolution in retail,” Luis Cantarell, head of Nestle’s Europe, Middle East and Africa business, told Reuters. “They have better capabilities (at retail) and we see an opportunity of a more holistic approach.”
R&R, one of Britain’s largest ice cream makers, is owned PAI Partners.
“Froneri, through the combination of Nestlé’s and R&R’s expertise, and the backing of PAI Partners, is a unique and exciting opportunity for further strong growth. We look forward to further leveraging our industrial approach to ownership and strong consumer expertise to support R&R in this new venture,” said Frédéric Stévenin, a partner at PAI Partners.
The transaction is subject to employee consultations and the approval of regulatory authorities. Financial details are not being disclosed.