International food and beverage giant Nestlé has announced some major changes to its product line this year, with the divestiture of its ice cream and water businesses.
Under the leadership of CEO Philipp Navratil, the Switzerland-based company that produces a range of products from chocolate bars to cat chow will now focus on its four “powerhouse” businesses: coffee, petcare, nutrition, and food and snacks.
Nestlé plans to sell its remaining ice cream division to Froneri, a global ice cream company headquartered in England. The company is also seeking potential buyers for its water and premium beverages division and expects it to be deconsolidated from 2027.
“I am encouraged by our performance during 2025, which reflects the targeted actions we have taken in a difficult external environment,” Navratil said in the Feb. 19 announcement.
“We are accelerating our strategy. We are focusing our portfolio on four businesses, led by our strongest brands, with prioritized resources and a simplified organization.”
A statement posted on the company website addresses consumers’ concerns about upcoming changes to the product lines.
“At Nestlé, we continuously evaluate our product portfolio to ensure we’re meeting evolving consumer needs,” the website states.
“Sometimes, this means saying goodbye to certain products. These decisions are never taken lightly—they’re based on factors like consumer demand, ingredient availability, and our commitment to innovation.”
Additional changes for 2026 include integrating the company’s Nutrition and Nestlé Health Science into a single business to strengthen category leadership, upgrading marketing strategies, simplifying organizational structure, and building a performance culture within the organization.
Personnel changes will also take place as a result of the newly integrated Nutrition business. The company announced that Anna Mohl, CEO of Nestlé Health Science, will step down from the Executive Board at the end of February.
During the fourth quarter of 2025, the company also announced global personnel reductions of nearly 16,000, including about 12,000 white-collar professionals. The company noted those cuts would save 1 billion Swiss francs ($1.3 billion) by the end of 2027.
Meanwhile, Navratil shared that sales of its four categories are expected to grow by 3 to 4 percent over the coming years, as the firm focuses on affordability, e-commerce, and health-conscious consumption.
Nestlé’s total sales for 2025 were reported at 89.5 billion Swiss francs ($115.4 billion). Its coffee and confection products were the biggest sellers, with pet care also scoring high for growth.
Its gross profit was reported at 40.8 billion Swiss francs ($52.5 billion), with a less than 1 percent decrease in profit margins due to the impact of higher coffee and cocoa prices.
During 2025, Nestlé also increased its ownership stake in China’s Hsu Fu Chi confectionery company and in Orgain, a leader in plant-based nutrition.
Nestlé is the world’s largest food and beverage company with over 2,000 brands and a presence in 185 countries. Focused on nutrition, health, and wellness, the company employs around 270,000 people. It produces well-known brands such as Mountain Blend and Nescafé coffee, Kit Kat bars, Toll House cookies, Purina pet foods, Hot Pockets, California Pizza Kitchen, yogurt, and others.
As of December 2024, Nestlé also holds approximately a 20 percent stake in L'Oréal, the world’s largest cosmetics company, which owns brands such as Garnier, Maybelline, Lancôme, and Urban Decay.
