Froneri enters Israeli market with acquisition of Nestlé’s Noga ice cream brand
The acquisition expands Froneri’s global reach, with the company now active in Europe, the Middle East and North America
05 Jul 2019 --- Ice cream manufacturer Froneri is set to acquire the Israel-based Noga Ice Creams Limited Partnership – part of the Nestlé-owned Osem Group. The move is still subject to regulatory approval but may mark Froneri’s first entry into the Israeli market. This milestone deal will consolidate all of the Nestlé Europe, Middle East & North Africa ice cream businesses within the Froneri group. The specific financial terms of the deal remain undisclosed.
Froneri confirms that its existing management team will continue to lead the business. “Our consumers are at the heart of our business and we intend to invest in the local brands, products and flavors that Nestlé has in the market for over 20 years,” says Ibrahim Najafi, CEO of Froneri.
“This milestone deal marks the final stage of the transition of our EMENA ice cream businesses into Froneri, further strengthening its presence in the region,” notes Marco Settembri, CEO Zone Europe, Middle East and North Africa, Nestlé.
Popular brands under Noga, including La Cremeria, Extreme, Cookilida, Crunch and Gumigum, will continue to be available.
In May, Froneri acquired Tip Top, global dairy co-operative Fonterra’s iconic New Zealand ice cream business. Fonterra confirmed the sale of Tip Top to Froneri for NZ$380 million (US$250.3 million), as it looks to trim its portfolio and focus on international markets. The completion of the agreement is expected by the end of the month. The Tip Top brand is over 80-years old and was incorporated into Fonterra in 2001, as part of its purchase of Peter and Browne’s Foods Business. The sale represents a gain of about NZ$100 million (US$66.7 million) above book value, which would have a positive six cents-per-share impact on earnings, Fonterra revealed in a statement.
In March, Froneri pegged indulgence and premiumization as key trends in the ice cream sector. The global player continues to eye opportunities within the space, launching in March a premium ice cream stick for UK and European markets called Nuii, which their company says “offers a new experience, which we expect our European consumers to love,” made with superior and exotic ingredients.
By Benjamin Ferrer
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