Nestle enters talks to sell frozen food unit

A disposal would come as the world’s largest packaged foods maker grapples with slowing in once-hot economies like China and Brazil and as cost-conscious shoppers in Europe and North America remain cautious.

It missed a long-term sales target last year and has signalled that it could be difficult to reach this year.

“Nestle has today announced that it has entered into exclusive negotiations for the sale of Davigel with the Brakes Group,” the Vevey-based food group said in a statement, confirming reports earlier in the week.

Nestle said it would not disclose financial details, and that the deal was subject to consultations with works councils and the approval of the competition authorities.

Davigel - which supplies frozen and chilled meals and ice cream to restaurants and hospitals - was part of the Buitoni frozen food business Nestle bought in 1989.