Nestlé has thawed on ice cream.
The world’s biggest food and drinks maker said Thursday that it was in “advanced negotiations” to sell its remaining ice cream business to its joint venture partner, Froneri.
The division, which includes brands such as Häagen-Dazs and Drumstick, is valued at just shy of 1 billion Swiss francs ($1.3 billion). Nestlé plans to sell the brands to UK-based Froneri over the next year, but remain in the joint venture.
Nestlé’s share price gained 3% in morning trade in Zurich, before giving up some of those gains.
The move comes as the maker of Nespresso and KitKat bars looks to boost sales and simplify its sprawling operations under new CEO Philipp Navratil. Navratil took over from Laurent Freixe in September, after Freixe was abruptly dismissed for failing to disclose a romantic relationship with a more junior colleague.
In full-year earnings, Nestlé said it would focus on its coffee, pet care, nutrition and food and snacks businesses.
“We are focusing our portfolio on four businesses, led by our strongest brands,” Navratil said in a statement.
