Froneri has entered agreements to acquire the Ice Cream Business from Food Union Latvia

Riga, Latvia, October 15th, 2025 – Froneri, one of the world’s largest ice cream companies, has entered agreements to acquire the European ice cream business of Food Union, including the ice cream operations in Latvia. The specific financial details are not being disclosed. The proposed transaction – subject to approval by the Competition Council in Latvia – would include only the ice cream business in Latvia following separation into a new legal entity. The sale is expected to close in the coming months.

Food Union Europe’s ice cream business holds strong positions within each of its markets, with locally loved brands. The dairy business anchored in its heritage dairies – AS Rīgas piena kombināts and AS Valmieras piens – is excluded from the transaction in Latvia and the ownership of which remains unchanged. In the coming months, after consultations with employee representatives, we will be working on a plan to separate the ice cream operations from the dairy operations in Latvia. It has been confirmed that the management teams of both businesses will be existing Food Union Latvia employees.

Froneri CEO Phil Griffin said:

“Food Union has built a portfolio of locally loved brands which we plan to invest in to further develop the significant potential of the business. We look forward to welcoming the Food Union team to Froneri to support our ambition to be the world’s best ice cream company.”

Food Union CEO in Europe and Latvia Artūrs Čirjevskis said:

“Froneri is the global benchmark in ice cream, and we’re delighted that our loved Latvian brands – Pols, Tio, Ekselence, Karlsons and others – have found a perfect home with a truly world-class leader. Under Froneri’s stewardship, these brands will gain broader reach and the strengths of a global portfolio and capabilities, while preserving the local character and quality consumers love. We look forward to building the next chapter together.”

For the dairy business – AS Rīgas piena kombināts and AS Valmieras piens – the separation will enable it to sharpen focus on its core categories of high added value products and beloved brands such as Kārums, Lakto, Limbažu piens, Valmiera, Dzintars and others in home markets of Latvia and Baltics, and in export markets. 

Artūrs Čirjevskis adds:

“In recent years, the refined commercial strategy with a focus on high value-added product categories has resulted in growing market shares in domestic markets in the Baltics and double-digit growth in export markets in Western Europe and Middle East, primarily focusing on large retail chains. Demand for quality, fresh and healthier dairy is rising, and the remaining Dairy operations with its heritage dairies AS Rīgas piena kombināts and AS Valmieras piens will keep delivering on that promise.”

The intended transaction reflects a clear, deliberate and focused strategy by both Froneri and Food Union. Ice cream and dairy businesses operate under fundamentally different value chains, with ice cream requiring dedicated cold chain management. This acquisition would allow Froneri to continue building the world’s best ice cream company, while the remaining dairy operations in Latvia will focuses on accelerating its growth in dairy snacking. 

About Froneri

Froneri is an international company, created in 2016 as a joint venture between Nestle and PAI partners. Froneri is present in more than 25 countries, with revenue of more than EUR 5bn and more than 12,000 employees worldwide. For more information about Froneri visit www.froneri.com

About Food Union

Food Union Europe is a leading ice cream, dairy and frozen food company operating primarily in the Nordics, Baltics and Romania and is owned by PAG Private Equity. Food Union employs over 2,200 employees, and its annual turnover exceeds EUR 300 million. For more information about Food Union visit www.foodunion.com