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Nestlé and Südzucker in Negotiations about Sch?ller

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Vevey,
Jun 29, 2001

Nestlé S.A. announces that negotiations are in progress with the owners of Sch?ller Holding, with the intention of jointly determining ways and means to optimize the development of the ice cream and frozen food sectors.

Südzucker, majority owner of Sch?ller Holding, intends to focus strategically on sugar and sweeteners; Nestlé, on the other hand, is interested in consolidating its position as the strong global number two player in the ice cream sector by reinforcing this business in Northern and Central Europe. Sch?ller Holding is mainly active in the ice cream and frozen sector in large parts of Europe. The company's total sales amount to about EUR 1.4 billion. It has developed a series of innovative solutions, especially in the area of home delivery and alternative sales channels. Sch?ller Holding furthermore is the exclusive license holder for M?venpick ice cream products in its distribution area.

Nestlé has the opportunity to expand its business in the significant ice cream markets of Germany, as well as Northern and Central Europe. In the Southern part of the continent (France, Italy, Spain, Switzerland), as well as in the other parts of the world, Nestlé already occupies strong positions in this sector, which counts among the strategic growth areas of the Group.

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