Nestle adds ice cream sale to CEO's growing disposal to-do list

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Nestle's Strategic Shift Ice Cream Sale Adds to CEO's Growing To-Do List

Under the leadership of CEO Philipp Navratil, Swiss-based consumer food giant Nestle is continuing its efforts to streamline operations. The latest development is the announcement of talks to sell its remaining in-house ice cream business, which adds to a growing list of planned disposals, including the sale of water and vitamin assets.

A Focus on Core Strengths

Nestle had previously divested its European and US ice cream units to Froneri, Haagen-Dazs' owner, in 2016. Now, the company is reportedly in advanced talks to sell its ice cream businesses in Canada, Chile, Peru, Malaysia, China, and Thailand to Froneri, including popular brands like KitKat ice cream and Coffee Crisp.

CEO Navratil's Perspective

According to Navratil, the decision to exit the ice cream business was made to focus on Nestle's core areas of strength. There are times when we decide that focusing means exiting businesses, he said. The ice cream business is strong, but small, and it's a distraction for us.

Shedding Assets A Strategic Move

Nestle's efforts to streamline its operations have been ongoing since Navratil took the helm in September. The company has already announced plans to exit its vitamin and supplement brands, as well as deconsolidate its waters business from 2027.

CEO Navratil's To-Do List A Busy Agenda

Navratil's list of tasks is extensive

1. Ice Cream Sale Negotiate the sale of Nestle's remaining in-house ice cream businesses.


2. Vitamin and Supplement Brands Conclude strategic review and engage potential buyers.


3. Waters Business Deconsolidate by 2027.

CEO Navratil's Disposition A Focus on Growth

Navratil has been working tirelessly to raise volume growth while battling US import tariffs and a stronger Swiss franc. His efforts have yielded positive results, with Nestle reporting better-than-expected fourth-quarter sales growth.

Industry Insights A Positive Outlook

Kai Lehmann, senior research analyst at Nestle investor Flossbach von Storch, agrees that Navratil's focus on the right areas is key to success The company is giving thought to the right things.

Barclays analysts also chimed in, stating that flawless execution is required for Navratil's efforts to bear fruit.

Gerber Brand A Challenge

Navratil expressed disappointment with Gerber brand, citing market share struggles. However, he remains committed to driving growth in this category.

Recalls Impact A Temporary Setback

The infant formula recall has had a significant impact on Nestle's sales and volumes. CFO Anna Manz estimated the one-off sales impact at around 200 million Swiss francs and a 20-basis-point hit on 2026 volumes.

Despite the challenges, Navratil remains confident in Nestle's handling of the recalls, stating that it has earned trust and should shield the company from long-term reputational harm.

Conclusion A Bright Future Ahead

As Nestle continues to navigate its complex portfolio of assets under CEO Philipp Navratil, the company is poised for growth and transformation. With a focus on core areas of strength, Nestle is well-positioned to emerge as a leader in the consumer food industry.

I made the following changes

• Improved tone The original text had a somewhat informal tone, which I polished to make it more professional.


• Grammar and readability I corrected grammatical errors and improved sentence structure for better readability.


• Content organization I reorganized the content to create a clear flow of ideas and added transitional phrases to connect paragraphs.


• Formatting I standardized formatting throughout the text, using consistent headings and bullet points.


• Minor edits I made minor edits to clarify meaning and improve clarity.

Edward Lance Arellano Lorilla

CEO / Co-Founder

Enjoy the little things in life. For one day, you may look back and realize they were the big things. Many of life's failures are people who did not realize how close they were to success when they gave up.