Nestle has struck a deal with R&R Ice Cream to form a joint venture that will sell ice cream and frozen food in over 20 countries.
The venture follows a portfolio review aimed at improving Nestle's performance, which has been weakened by slowing emerging markets, a change in consumer tastes toward fresher foods, and heightened competition.
The 50/50 joint venture, to be called Froneri, will combine the Nestle and R&R ice cream businesses in Europe, the Middle East, Argentina, Australia, Brazil, the Philippines and South Africa, marrying Nestle's strong brands and presence in convenience stores and ice cream stands with R&R's manufacturing agility and footprint at traditional retailers.
'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.'
Froneri will be based in the UK, where it plans to eventually list on the London Stock Exchange.
Aside from the ice cream businesses of Nestle and R&R, which makes Cadbury Flake Cones and other frozen treats, Froneri will include Nestle's European frozen food business, excluding pizza and retail frozen food in Italy, and its chilled dairy business in the Philippines.