As part of its on-going portfolio review, Nestlé South Africa announced the signing of an agreement to sell its ice cream business to UK based ice cream manufacturer, R&R. The divestment includes local ice cream brands and Nestlé’s ice cream manufacturing facility in Clayville with approximately 200 employees transferring to R&R.
Chairman and managing director, Ian Donald comments: ‘Nestlé is strongly committed to doing business in South Africa. We have been present in this market for nearly 100 years and we currently employ 3100 employees across eight factories, three distribution centres and head office. The sale of an asset of this nature is not a decision that is taken lightly. However, as does any business, we continuously seek opportunities to improve our operations, review our portfolio and protect the livelihoods of our employees wherever we can.’
The agreement is subject to the approval of the South African competition authorities.