Grupo Herdez has made significant strides in the food and beverage industry by agreeing to transfer operational control of its Nestlé-licensed ice cream business in Mexico to Froneri.
In a statement released yesterday (April 13), the Mexico-based food group revealed that this ice cream operation will be integrated into a new partnership, with both companies holding equal 50% stakes. This strategic move reflects ongoing trends in the food and drink business, where collaboration often leads to enhanced market positions.
Froneri, a joint venture between Nestlé and private-equity firm PAI Partners, confirmed the transaction in a separate statement. Notably, Herdez has operated the ice cream business under an exclusive license from Nestlé since 2015, aligning with current food and drink consumer trends focused on premium products.
As part of the agreement, Froneri will inject capital to strengthen the financial structure of the business and support its growth. They will also exercise full operational control. However, it’s worth noting that Froneri indicated this deal “does not represent a cash inflow for Grupo Herdez.”
Froneri CEO Phil Griffin emphasized, “The business operates under a portfolio of much-loved brands which we plan to invest in to further develop the business. We look forward to working with the Grupo Herdez team.”
After the deal is finalized, Grupo Herdez will no longer include the ice cream unit’s results in its financial statements but will classify its share as “equity investments in associated companies.”
Héctor Hernández-Pons Torres, chairman and CEO of Grupo Herdez, stated, “This alliance marks the next step in the configuration of our portfolio, and we are proud to share the potential of this business with a global expert like Froneri. The focus of this alliance will remain on long-term value creation.”
This agreement comes on the heels of Nestlé’s announcement in February regarding plans to exit its remaining ice cream business that isn’t part of the Froneri joint venture. Addressing analysts, Nestlé CEO Philipp Navratil mentioned that while the remaining ice cream business is strong, it has become a “distraction.” He added, “This business is a great fit for Froneri and we have agreed to sell the business in a phased way.”
As one of the largest ice cream companies globally, Froneri operates in over 25 countries and generates revenue of more than €5 billion ($5.9 billion). This partnership aims to combine Froneri’s global ice cream expertise with Grupo Herdez’s local market knowledge. Their portfolio includes well-known brands like Helados Nestlé, Häagen-Dazs, Mega, and Carlos V.
The brand licensing in Mexico will be aligned with Froneri’s global framework with Nestlé, reflecting key trends in the food and beverage industry.
Completion of the transaction is contingent upon approval from Mexico’s National Antitrust Commission (CNA). The companies anticipate finalizing the deal later this year, signaling a new chapter in their collaboration and a potential shift in consumer engagement within the ice cream market.
