Nestle Sheds Israeli Ice Cream Business to Froneri

The Israeli subsidiary of Swiss food and beverage giant Nestle, Osem, revealed plans to divest its Noga ice cream business in Israel to Froneri, a joint venture established by Nestle and R&R in 2016, according to a July 4 company press release. Nestle’s latest move comes after the firm completed the transition of its Europe, Middle East & North Africa (EMENA) ice cream businesses to Froneri. 

“With the continued growth and global prominence in the ice cream market, Froneri’s success speaks for itself. This milestone deal marks the final stage of the transition of our EMENA ice cream business into Froneri, further strengthening its presence in the region,” said Marco Settembri, chief executive officer of Zone Europe, Middle East, and North Africa at Nestle, in a statement. 

A manufacturing plant in Kirjat Mal’achi, Israel will remain in place under the operation of its existing management team led by Ofer Green. About 350 workers are currently employed by Noga, which produces a number of ice cream brands, including Crunch, Cookilida, and La Cremeria. 

“Despite intensifying competition over the past few years, Noga has established itself, under the management of Ofer Green, as one of the leaders in Israel’s ice cream market,” Avi Ben Assayag, chief executive officer of Osem, said in the release. “The transition of Froneri will benefit Noga in terms of innovation and product range – all of which will be implemented into the local market.”

Company officials project that the transition will close by the end of September this year following the completion of customary approvals and closing conditions.

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