Nestlé is in discussions to divest its remaining ice cream business to Froneri, a company it collaborated with a decade ago. However, there will be no immediate impact on Nestlé’s Canadian operations during this transition.
A significant facility in London, Ontario, employing over 750 individuals, could see ownership changes within the next 12 to 18 months, according to Nestlé. Catherine O’Brien, Nestlé Canada’s senior vice president of corporate affairs, assured that operations will continue without immediate alterations for employees, customers, or partners.
Froneri, established in 2016 through a partnership between Nestlé and private equity firm PIA Partners, is a global ice cream manufacturer that produces renowned brands like Häagen-Dazs and Drumstick.
The Nestlé plant in London, situated on Wilton Grove Road for more than fifty years, underwent a $51.5 million expansion in 2018 with a $390,000 grant from the Southwest Development Fund. The union representing Nestlé employees expressed concerns about the future of the plant following the sale to Froneri, especially with two years remaining in the collective agreement. Gary Bast, the representative for Teamsters Local 647, emphasized the importance of the Nestlé plant to the community.
Nestlé’s O’Brien emphasized the company’s commitment to transparent communication and pledged to provide updates to employees as soon as they become available.