Nestle has insisted that the sale of its Mexican ice cream business is a “local decision” that will not impact its global ice cream operations.
The Swiss food group entered into an agreement that will see it sell its ice cream manufacturing and distribution capabilities in Mexico to Grupo Herdez for MXN1bn (US$68.7m). The deal provides Herdez with a long-term licensing agreement to manufacture and market Nestle’s ice cream brands in Mexico, including the Nestle, Mega, PelaPop and eXtreme brands.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
A spokesperson for Nestle told just-food: “The sale of the Mexican ice cream business is a local decision based on Nestle Mexico’s portfolio review.”
Nestle is reviewing its portfolio on a group-wide basis in a bid to sharpen its focus on areas of growth. Speaking at the group’s AGM in April CEO Paul Bulcke stressed: “We are looking at our product and brand portfolio and analysing it through a sharper, stricter lens. We are making choices about where we want to invest, where we want to improve and the areas we want to divest.”
He continued: “Making such choices enables us to put our people and resources behind our best opportunities. We can focus investment more precisely, move faster and be more agile and responsive. This results in a product portfolio which is stronger and more profitable.”
As part of this process, Nestle has sold off a number of assets, including its Jenny Craig weight management business, US sports nutrition assets including the PowerBar and Musashi brands and its stake in Swiss food ingredients group Givaudan.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataThe spokesperson declined to comment on which areas of its Mexican business Nestle has earmarked for growth and where its priorities in the country lie. Nestle did, however, insist that Herdez is well-positioned to accelerate growth in ice cream. “We believe that Grupo Herdez is the best home for our ice cream business. Their operational capabilities and the strength of our brands provide a good basis to develop growth,” the spokesperson said.
For more coverage of the deal, click here.
