Nestlé Hands Over US Ice Cream Business

Category : Business

Unlocking Word Meanings

Read the following words/expressions found in today’s article.

  1. turn over / tɜrn ˈoʊ vər / (phrasal) – to give someone else the control over something

    Management will be turned over to the vice president’s control after the president resigns.

  2. portfolio / pɔrtˈfoʊ liˌoʊ / (n) – a collection of all products or services offered by a company

    The company started with selling only shoes; but now it has clothes, toys, and even home appliances in its portfolio.

  3. restructure / riˈstrʌk tʃər / (v) – to change how something is organized

    The company will restructure by adding more departments and transferring some staff members to other teams.

  4. under pressure / ˈʌn dər ˈprɛʃ ər / (idiom) – forced into doing something

    The company’s management is under pressure to release a statement after keeping quiet about the issue for months.

  5. slash / slæʃ / (v) – to cut or reduce something greatly

    Because of budget limitations, the company decided to slash each worker’s salary in half.


Read the text below.

Swiss multinational food and beverage company Nestlé is turning over its ice cream enterprise in the United States to UK-based ice cream manufacturer Froneri.

The deal, which puts brands like Nestlé Ice Cream and Häagen-Dazs / ˈhɑːɡəndæs / under Froneri’s management, costs $4 billion. The acquisition makes Froneri the second largest ice cream manufacturer in the world next to Unilever, which has Ben & Jerry’s and Selecta under its portfolio.

Froneri has been in the ice cream industry since 1932 but under a different name. It became known as it is today when in 2016, it gained control over the combined products of Nestlé in Europe and R&R—an England-based ice cream manufacturer.

Since its establishment, Froneri has expanded its reach in Europe, Latin America, Africa, and Asia-Pacific. With its latest acquisition, the ice cream manufacturer gains a wider market and a stronger global presence.

Nestlé said that it will continue managing its ice cream businesses in Canada, Latin America, and Asia. However, it is starting to restructure its business by focusing on products that are performing well in terms of sales, particularly baby food and coffee.

According to sources, Nestlé is under pressure to deal with the changing demands of customers who are becoming more health-conscious. Thus, it is gradually slashing its sales of sugary and fatty foods like ice cream.

A business analyst also said that the recent deal between Nestlé and Froneri shows the former’s efforts to transform its product portfolio by giving up its underperforming businesses.

Viewpoint Discussion

Enjoy a discussion with your tutor.

Discussion A

• Given the changing demands of consumers, do you think it was a good move for Nestlé to give up its US ice cream business? Why or why not?
• Now that people are looking for healthier options, how do you think ice cream businesses can still continue to grow? Explain.

Discussion B

• What kinds of businesses do you think will thrive amidst the increasing demand for healthier products? Discuss.
• Aside from offering products that are healthier, how else can businesses nowadays win more consumers (e.g. offering cheaper alternatives)? Discuss.

Category : Business