Nestlé is in talks to sell its remaining ice cream business to Froneri, a company it teamed up with ten years ago, but states that Canadian operations won’t be affected right away.
A significant plant employing around 750 people is situated in London, Ont., just south of the 401. Nestlé mentioned that the ownership transition could take about 12 to 18 months.
“During this period, operations will continue as usual,” said Catherine O’Brien, senior vice-president of corporate affairs for Nestlé Canada, in a statement. “There will be no immediate changes for our employees, customers, or partners.”
Froneri is an international ice cream manufacturer created by Nestlé and private equity firm PIA Partners in 2016. The partnership produces well-known brands like Häagen-Dazs and Drumstick.
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Concerns from Nestlé Union
The Nestlé facility on Wilton Grove Road has been part of the community for over fifty years. In 2018, the company revealed a $51.5 million expansion along with a $390,000 grant from the provincial government’s Southwest Development Fund. Today, the union representing workers expressed uncertainty about the long-term future of the plant following the sale to Froneri. There are two years left in their collective agreement. “The biggest concern we have is what’s going to happen to the plant. We have no information yet, but London’s Nestle is a huge part of the community,” said Gary Bast, the union representative for Teamsters Local 647. Nestlé’s O’Brien stated that the company aims for open communication and will provide updates to employees when they become available.Source link
