Nestlé and R&R agree to set up ice cream and frozen food joint venture

Swiss food company Nestlé and UK-based ice cream company R&R have agreed to set up a joint venture, called Froneri.

With expected sales of Sfr2.7bn ($2.77bn) across 20 countries, the JV will employ approximately 15,000 people.

In addition to its UK headquarters, Froneri will have operations 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 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.

This deal is subject to employee consultations and the approval from regulatory authorities.

Financial details have not been disclosed.

Nestlé CEO Paul Bulcke said: "Froneri will capitalise 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."

R&R CEO Ibrahim Najafi said: "R&R has gone from strength to strength in the last few years and the blend of people from the two organisations will create a leading team, ideally suited to drive future growth."