Unilever has announced plans to separate its ice cream division, which includes brands like Ben & Jerry’s, Magnum, and Wall’s, into a standalone entity. This move is part of the company’s broader Growth Action Plan aimed at streamlining operations and focusing on core business areas. The separation is expected to be completed by the end of 2025, with the new ice cream company headquartered in Amsterdam and listed on stock exchanges in Amsterdam, London, and New York.
The decision to spin off the ice cream division stems from its distinct operational characteristics compared to Unilever’s other business units. The ice cream business has unique supply chain requirements, a different channel landscape, and greater seasonality, making it less aligned with Unilever’s other operations. By separating, Unilever aims to create a more focused company operating in four key areas: Beauty & Wellbeing, Personal Care, Home Care, and Nutrition.
As part of this strategic overhaul, Unilever is also launching a comprehensive productivity program anticipated to deliver cost savings of around €800 million over the next three years. This initiative will focus on creating a leaner, more accountable organization, with investments in technology to drive efficiencies. The program is expected to impact approximately 7,500 predominantly office-based roles globally.
The ice cream division, which generated €7.9 billion in revenue in 2023, will operate as an independent company with its own management team. The separation is expected to provide the ice cream business with the operational and financial flexibility to grow and allocate resources in support of its distinct strategy.
Unilever’s CEO Hein Schumacher stated, “Under the Growth Action Plan, we have committed to do fewer things, better, and with greater impact.” He emphasized that the separation of the ice cream division and the productivity program will help create a simpler, more focused, and higher-performing Unilever.
The company’s shares rose following the announcement, reflecting investor optimism about the strategic changes. Analysts have noted that the separation could unlock value for shareholders and allow both Unilever and the new ice cream entity to pursue more targeted growth strategies.
This move aligns with Unilever’s ongoing efforts to optimize its portfolio and focus on high-growth, high-margin businesses. The company has previously divested other segments, such as its tea business, to concentrate on its core operations.
As Unilever moves forward with this strategic overhaul, the market will be watching closely to see how the separation impacts the company’s performance and how the new ice cream entity positions itself in the competitive frozen dessert market.
