Nestle acquires rights to Haagen-Dazs

Karen S. Kim

GLENDALE -- Glendale-based Nestle USA has taken the reins of premium

ice cream brand Haagen-Dazs after agreeing to buy out General Mills

Inc.’s 50% stake in Ice Cream Partners USA for $641 million.

The deal gives Nestle sole rights to manufacture and distribute

Haagen-Dazs in the U.S. and Canada for the next 99 years.

“Certainly this is going to enable us to continue to grow in the ice

cream market, which is very strategic for Nestle,” said Molly Dell’Omo,

director of corporate and brand affairs for Nestle USA.

Economic analyst Jack Kyser agrees.

“What they’re trying to do is solidify their hold on the premium end

of the market,” said Kyser, chief economist for the Los Angeles County

Economic Development Corp. “When you think high-end ice cream, you think

Haagen-Dazs. This is a good move for them.”

Nestle and Pillsbury’s Haagen-Dazs joined forces in August 1999,

combining their ice cream businesses to form Ice Cream Partners USA. But

General Mills Inc.’s recent acquisition of Pillsbury gave Nestle the

opportunity to buy out the other half of its 50-50 ice cream partnership.

Ice Cream USA, based in San Ramon, recorded sales of $700 million last

year, Nestle officials said.

Dell’Omo said the company would continue to be based in San Ramon and

that no changes in product or business administration of the frozen

dessert lines is expected.

“We see it as business as usual,” Dell’Omo said.

Haagen-Dazs officials could not be reached for comment.

This is the second notable acquisition involving Nestle in the last

year. Nestle’s corporate Swiss parent Nestle S.A. was given permission by

the U.S. Federal Trade Commission on Dec. 11 to acquire Ralston Purina

Co. in a $10.3-billion deal.