Nestle will raise its stake in Dreyer's to 67 percent from 23 percent by merging its Haagen-Dazs and other brands in the U.S. with Dreyer's business in exchange for 55 million shares, according to Nestle Spokesman Francois-Xavier Perroud.
The maker of Edy's ice cream is Nestle's third addition in the fast-growing frozen treats business in six months. Gaining control of Dreyer's will give the Swiss company about 17 percent of the $25 billion global ice cream market, roughly equal to global leader Unilever, the company says. Dreyer's Chairman T. Gary Rogers will lead the combined businesses.
Moderator Comment: What impact will the Nestle/Dreyer's deal have on the ice cream and frozen novelty market?
Clearly, this deal signals the intention of putting the combined Nestle/Dreyer's entity into a position to go after the market share held by Good Humor/Breyers. It could also signal problems ahead for local and regional ice cream suppliers as a stronger Nestle/Dreyer's commands more freezer case space. [George Anderson - Moderator]