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Nestlé is negotiating to sell off the remainder of its ice cream business to Froneri, a company it partnered with ten years ago, but says there will be no immediate impact on its Canadian operations.
A large plant employing upwards of 750 people is located in London, Ont., south of the 401. Nestlé said the ownership change could take approximately 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 manufacturer formed by Nestlé and private equity firm PIA Partners in 2016. Together, brands such as Häagen-Dazs and Drumstick are produced by the partnership.
Nestlé union worried
The Nestlé London plant on Wilton Grove Road has been a fixture in the city for more than five decades with public money used to expand operations. In 2018, the company announced a $51.5 M expansion with a $390,000 grant from the provincial government’s Southwest Development Fund.
Today, the union representing employees said there are many questions about the longterm plans for the plant with the company selling to Froneri. There are currently two years left in the 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 said the company is committed to transparent communication and will share updates with employees when they’re available.
