Nestlé to Transfer Ice Cream Business, Affecting Ontario Facility

Nestlé is in talks to sell its remaining ice cream business to Froneri, a company it teamed up with ten years ago, but assures that there won’t be any immediate changes for its Canadian operations.

A large facility employing around 750 workers is situated in London, Ont., just south of Highway 401. Nestlé mentioned that the ownership transition could take roughly 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 a global ice cream producer created by Nestlé and private equity firm PIA Partners in 2016. Together, they produce well-known brands like Häagen-Dazs and Drumstick.

Nestlé union concerned

The Nestlé plant on Wilton Grove Road has been part of the community for over fifty years. In 2018, the company revealed a $51.5 million expansion plan supported by a $390,000 grant from the provincial government’s Southwest Development Fund.

Currently, the union representing workers expressed several concerns about what might happen long-term with the plant after selling 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 is committed to open communication and will keep employees updated as new information arises.

Source link