The Supply Side briefs: Nestle ice cream makeover, General Mills sell Argentine bakery

Nestle said its Dryer’s Ice Cream unit will revamp the recipes of six brands – Dreyer’s, Häagen-Dazs, Outshine, Skinny Cow, Nestlé Ice Cream and Nestlé Drumstick.

The company pledges to simplify the recipes removing GMO ingredients, artificial colors and flavor additives as well as high fructose corn syrup which will reduce the sugar content by 11% on select products.

“Nestle Dreyer’s Ice Cream understands that consumers want to know what’s in their food, where those ingredients come from and how the food products they purchase are made,” said Robert Kilmer, president, Nestle Dreyer’s Ice Cream. “As consumer demand centers on transparency and choice, we are responding with new ways to make ice cream even better. Using simpler ingredients that our consumers can recognize, and removing those that don’t belong, is a natural next step for our brands.”

The company said its slow churned process which was introduced in 2004 has half the fat and one-third fewer calories without sacrificing flavor. Nestle announced nine of its most popular Dreyer’s Slow Churned flavors will now be branded Slow Churned Simple Recipes, to reflect their simpler ingredient profile.

The improved recipes feature a label with seven or eight ingredients, reduced from an average of 22. Examples of specific ingredients removed include carrageenan and xanthan gum, replaced with ingredients such as pectin.

Nestle said it plans to update the remaining Slow Churned flavors by the end of 2017 and will continue to update other products across all brands in its portfolio.

GENERAL MILLS SELLS ARGENTINE BAKERY UNIT
General Mills has reached an agreement to sell its Argentina bakery and foodservice business to Grupo Bimbo, subject to regulatory approval. Terms of the deal were not disclosed in Wednesday’s (April 20) announcement.

The sale includes the General Mills bakery and foodservice business and all associated facilities, equipment, land and inventory in Argentina, as well as employment contracts for the production and salaried staff. This business unit employs about 360 people and the company expects job impact to be minimal. The deal is expected to be completed by May 2.

General Mills said it will continue to operate its growing retail food business in Argentina, including the La Salteña brand, where not part of the sale.

“Having assessed our performance in the current business environment, we have determined that we need to prioritize other growth opportunities within our Latin American portfolio,” said Sean Walker, President of General Mills Latin America.

General Mills has operated the bakery and foodservice business in Argentina since 2001, when it took over the business as part of its Pillsbury acquisition. The portfolio includes breads, pastries, small baked goods and croissants.