Vevey - Nestle, the world’s biggest food company, is in advanced talks with R&R Ice Cream to create a joint venture to run most of its ice cream business outside North America.
Nestle and R&R would own an equal share in the partnership and operate in 20 countries, the Vevey, Switzerland maker of Nespresso coffee and Cailler chocolate said in a statement Monday.
The joint venture, which also includes Nestle’s European frozen food business excluding pizza, would be established in 2016.
Founded in 1985 in North Yorkshire, England, R&R is the world’s third-biggest ice cream manufacturer and is owned by private-equity firm PAI Partners. It acquired Nestle’s South African ice cream business in March for an undisclosed price. In 2001, it bought Nestle’s UK ice cream unit.
“Combining the capabilities of our two companies in this way would offer an exciting opportunity for future growth in a dynamic category,” CEO Paul Bulcke said in the statement.
Nestle said the joint venture would be composed of senior executives from both companies, with Luis Cantarell becoming its chairman. He is currently head of Europe, Middle East and North Africa.
BLOOMBERG