Brands
Nestlé weighs trimming ice cream footprint and Froneri stak
Swiss giant reviews options including stake cut in €15bn JV as it eyes higher-margin focus post-Unilever split.
MUMBAI: Nestlé is melting down its ice cream ambitions or at least scooping back a few spoonfuls amid a strategic review that could see it slim its stake in blockbuster joint venture Froneri. According to a Bloomberg report published 18 February 2026, the Swiss food and beverage powerhouse is mulling a reduced presence in the global ice cream segment. Options on the table include trimming its holding in Froneri, the joint venture with private equity firm PAI Partners that houses crowd-pleasers like Häagen-Dazs, Mövenpick, and Rowntree’s or even shifting some of Nestlé’s remaining wholly owned ice cream operations into the JV.
Discussions remain fluid, with no final decisions locked in and no guarantee of any transaction materialising. One scenario has PAI Partners boosting its ownership if Nestlé pulls back, while another could see the Swiss group offloading a portion of its stake to an existing investor like the Abu Dhabi Investment Authority (ADIA).
Froneri itself got a hefty valuation boost in October (likely 2025), when Goldman Sachs and ADIA poured in fresh capital, pegging the business at around €15 billion (about $17.69 billion). The move turned heads in the sector, especially as Unilever spun off its ice cream arm last year into the now-independent Magnum Ice Cream Company freeing both giants to chase sunnier, higher-margin pastures.
Nestlé’s rethink, reportedly overseen by new CEO Philipp Navratil as he sifts through the company’s vast portfolio, mirrors broader industry trends: consumer giants are sharpening focus on core strengths amid shifting tastes and profitability pressures. Ice cream might be delicious, but it’s not always the creamiest part of the balance sheet.
Whether this ends in a stake sale, JV expansion, or just more pondering, the frozen dessert world could soon see another ownership shake-up. For now, Nestlé isn’t screaming “last orders” but it’s definitely checking the freezer temperature.
Brands
Estée Lauder to shed 10,000 jobs as new boss bets on digital shift
The cosmetics giant raises its profit outlook but stays silent on a possible merger with Spain’s Puig, as job cuts deepen and a three-year sales slump weighs on the turnaround
NEW YORK: Stéphane de La Faverie is not done cutting. Estée Lauder announced on Friday that it plans to eliminate as many as 3,000 additional jobs, taking its total redundancy programme to as many as 10,000 roles, up from a previous target of 7,000 announced a year ago. The company, which owns La Mer, The Ordinary, Tom Ford, and Aveda, employs roughly 57,000 people worldwide. The mathematics of what is now being contemplated is stark.
The fresh round of cuts is expected to generate a further $200 million in savings, bringing the total annual savings from the programme to as much as $1.2 billion before taxes. That money, De La Faverie has made clear, will be ploughed back into the turnaround.
A CEO in a hurry
De La Faverie, who took the helm in January 2025, inherited a company that had endured three consecutive years of annual sales declines. His response has been to move fast and cut deep. A significant portion of the latest redundancies reflects his push to reduce headcount at US department stores, long a cornerstone of Estée Lauder’s distribution model but now a channel in structural decline. In their place, he is accelerating the shift toward faster-growing online platforms, including Amazon.com and TikTok Shop, a pivot that is reshaping not just where Estée Lauder sells but how it thinks about its customers.
The numbers are moving in the right direction
Despite the pain, there are signs the medicine is working. Estée Lauder raised its profit outlook for the remainder of the fiscal year, guiding for adjusted earnings per share in the range of $2.35 to $2.45, above analyst estimates and a notable step up from the $2.05 to $2.25 range it had guided for in February. Organic net sales growth is expected to come in at 3 per cent, the company said, at the high end of the range it set out in February.
The share price tells a mixed story. After De La Faverie took charge, the stock surged nearly 60 per cent, buoyed by investor optimism that a longtime company insider could finally arrest the decline. But 2026 has been rougher: the shares have fallen 27 per cent this year, weighed down by disappointing February results and the overhang of unresolved merger talks with Spanish beauty giant Puig Brands SA. The company gave no additional details about those discussions on Friday, leaving the market to guess.
Silence on Puig
The proposed tie-up with Puig remains the most consequential unknown hanging over Estée Lauder. A deal with the Barcelona-based group, which owns brands including Carolina Herrera and Rabanne, would reshape the global luxury beauty landscape. But with nothing new to say and a turnaround still very much in progress, De La Faverie is asking investors to trust the process.
Three years of sales declines, 10,000 job cuts, and a merger that may or may not happen. At Estée Lauder, the overhaul has barely started.
