AN ice cream maker has launched a joint venture with Nestlé to strengthen its global standing.
R&R Ice Cream, in Leeming Bar, near Bedale, North Yorkshire, has set up Froneri alongside the food and drink supplier.
Bosses say the endeavour, which will be headquartered in the UK, will target European markets, as well as business in the Middle-East, Argentina, Australia, Brazil, the Philippines and South Africa.
They added Froneri will unite R&R and Nestlé’s ice cream production and include the majority of Nestlé’s European frozen food business and its Philippines chilled dairy operation.
R&R, which employs about 600 staff at Leeming, previously spent about £250m on Australia-based Peters to offset the seasonality of its European operations and brought Nestlé South Africa’s ice cream business under its wing to target greater sub-Saharan African trade.
Bosses last year revealed talks were underway on the Froneri tie-up, and Ibrahim Najafi, R&R chief executive, who will take on a similar role to lead Froneri, said the partnership will deliver numerous benefits.
He said: “I’m thrilled about the opportunity for R&R to combine with the biggest and best food business in the world.
“We have gone from strength to strength in the last few years and the blend of people from the two organisations will create a leading team, ideally suited to drive future growth.”
R&R, which is the world’s largest private label ice cream maker and third biggest global manufacturer of iced treats, already holds a licence with Nestlé to make treats across brands such as Smarties and Kitkat for the UK, and has similar deals with Cadbury and Mondel?z for products, including Dairy Milk and Toblerone respectively.
Earlier this year, Mr Najafi revealed the business was targeting luxury ranges for higher-end customers to fuel its ongoing expansion, highlighting its Cadbury-branded Marvellous Creations that feature candy floss and jelly popping candy flavours.
Such success, said Paul Bulcke, Nestlé chief executive, makes the Froneri venture an exciting prospect.
He said: “Froneri will capitalise on complementary strengths and expertise, combining Nestlé’s strong brands and experience with R&R’s competitive manufacturing model and significant retail presence.”
Mr Bulcke added Luis Cantarell, Nestlé’s executive vice president for Europe, Middle-East and North Africa, will chair Froneri’s board of directors, which will be made up of three senior Nestlé executives and three senior executives appointed by R&R owner, private equity firm PAI Partners.
The joint venture is subject to regulatory approval and staff consultations.
R&R’s Leeming factory, which is also its corporate headquarters, made 135 million litres of ice cream in 2015, the most of any of its manufacturing bases, which include sites in France, Germany, Poland and Italy.
The company was formed in 2006, when UK ice cream maker Richmond Foods merged with German counterpart Roncadin.
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