Nestlé to Sell Ice Cream Business to Froneri, D’Onofrio’s Future in Peru Uncertain

Nestlé is moving to offload the bulk of its remaining ice cream operations, a strategic shift under recently appointed CEO Philipp Navratil aimed at streamlining the company’s portfolio and refocusing on higher-growth areas like coffee, pet care and snacks. The move, announced alongside the company’s annual results on February 19, 2026, centers on selling assets to its existing joint venture partner, UK-based Froneri, for just under SFr1bn ($1.2bn). This decision follows a similar move by Unilever, which spun off its ice cream division into The Magnum Ice Cream Company last year.

A Portfolio Rationalization

Navratil, who joined Nestlé in September 2025, framed the sale as a necessary step in focusing the company’s resources. “There are times when we decide that focusing means exiting businesses,” he stated, according to reporting from Food Dive. “What we have is the case with our remaining ice-cream business – it’s strong but small, and it’s a distraction for us.” The divestiture is intended to address a recent downturn in the company’s performance, with profits falling 17% in the last year and shares hitting an eight-year low.

Impact on Froneri and the Joint Venture

Froneri, a 50-50 joint venture between Nestlé and private equity firm PAI Partners established in 2016, will be the primary beneficiary of the deal. The initial partnership combined Nestlé’s and R&R Ice Cream’s (owned by PAI Partners) operations across Europe, the Middle East, Argentina, Australia, Brazil, the Philippines, and South Africa. While Nestlé is selling off additional assets to Froneri, the company has explicitly stated it has “no plan to exit the JV with Froneri,” as clarified by Navratil in a follow-up media call, Yahoo Finance reports. The sale is expected to be completed in phases over the next year.

D’Onofrio in Peru: A Local Focus

The planned sale has particular implications for Nestlé’s operations in Peru, where the company holds an 88% market share in the ice cream sector through its D’Onofrio brand. The brand, acquired in 1997, includes well-known products like Peziduri, Sublime, and Donito, alongside the ubiquitous yellow ice cream carts. Nestlé Peru indicated it is “evaluating details” regarding the impact of the global restructuring on its local operations, promising further information “in due course.”

Recent Investments and Expansion Plans

Despite the impending sale, Nestlé Peru has been actively investing in its ice cream business. The company has invested approximately $10 million annually in infrastructure improvements, including eco-friendly freezers and logistical upgrades. Recent marketing efforts have focused on innovation, including the launch of Nescafé-flavored ice cream and KitKat Layers, with Peru serving as a pilot market for the latter. Andrea Arllentar, Marketing Manager for Ice Cream at Nestlé Peru, highlighted the success of the summer campaign and expressed optimism about double-digit growth for the season. The company was also reportedly finalizing plans to launch a chain of D’Onofrio branded ice cream shops, building on the existing Antica Gelateria del Corso chain that landed in Lima almost three years ago.

Consumer Trends and Market Dynamics

The Peruvian ice cream market is experiencing growth, with per capita consumption reaching approximately 2 liters annually, a significant increase from 0.87 liters three decades ago. Arllentar noted a shift towards a more informed and demanding consumer base seeking indulgence, convenience, and brands that align with their values. D’Onofrio currently reaches over 60,000 points of sale and relies on a network of more than 5,000 independent ice cream vendors. The company is responding to evolving consumer preferences by offering a range of price points, from affordable options like Buen Humor to premium offerings.

Competitive Landscape and Future Strategy

While D’Onofrio dominates the Peruvian market, the ice cream sector is becoming increasingly competitive, with new business models emerging. Nestlé Peru is evaluating these developments and focusing on strengthening its brand, portfolio, and consumer experience across all channels. The company is also exploring opportunities to reinvent its retail presence, potentially through the planned D’Onofrio branded ice cream shops. The focus on Antica Gelateria del Corso, with its emphasis on quality and natural ingredients, signals a continued commitment to the premium segment of the market.

Financial Implications and Deal Structure

The sale of the remaining ice cream assets is expected to generate approximately $1.2 billion for Nestlé. While this represents a significant sum, it’s important to note that the divested business constitutes a relatively small portion of the company’s overall revenue. The phased nature of the sale, expected to conclude by early 2027, suggests a deliberate approach to minimizing disruption and ensuring a smooth transition. The deal structure, involving the sale to an existing joint venture partner, also indicates a desire to maintain a continued presence in the ice cream market through Froneri.

What’s Next: Regulatory Review and Transition

The completion of the sale is subject to standard regulatory approvals. While the specifics of the review process are not detailed in available reporting, it’s likely to involve scrutiny from competition authorities in the key markets affected by the transaction. Nestlé has indicated it will provide updates on the progress of the sale as they become available. In Peru, the company will need to determine how the global restructuring will impact its local operations and communicate those changes to stakeholders, including employees, vendors, and consumers. The company’s commitment to evaluating the future of its D’Onofrio branded retail expansion suggests a continued investment in the Peruvian market, even as it streamlines its global ice cream portfolio. Reuters provides further coverage of the broader restructuring plan.