Unilever, a multinational conglomerate known for its wide range of consumer goods, has announced a strategic move to spin off its ice cream brands, including popular names like Ben & Jerry's, Magnum, Wall's, and Popsicle, into a standalone business. This decision is part of Unilever's ongoing growth plan aimed at increasing focus on its other brands. The separation process is set to commence immediately and is expected to be finalized by the end of 2025.
The company has also revealed plans to streamline its operations by eliminating 7,500 jobs, primarily office-based roles globally. This move is part of Unilever's broader action plan, announced in October 2023, to drive growth and enhance efficiency. By divesting its ice cream business, Unilever aims to create a simpler, more focused organization that can deliver higher performance.
Unilever's decision to part ways with its ice cream brands comes as the company aims to capitalize on growth opportunities in other product categories. In 2023, ice cream accounted for 13% of Unilever's sales, generating $8.6 billion in revenue. However, this segment experienced the lowest sales growth rate of 2.3% compared to other units.
Unilever's remaining core business groups will now include Home Care, which features brands like Comfort and Surf detergents, and Nutrition, encompassing products such as Hellmann's mayonnaise and Knorr soups. The company's beauty and personal care units, which include popular brands like Dove, Pond's, Lux, and Lifebouy, have shown robust sales growth, outperforming the ice cream segment.
Unilever's chairman, Ian Meakins, expressed confidence in the decision, stating that the separation of the ice cream business will pave the way for a world-leading ice cream entity with promising growth prospects. The company remains open to the possibility of selling its ice cream brands as part of this strategic realignment.
Overall, Unilever's move to divest its ice cream brands underscores its commitment to driving growth, enhancing operational efficiency, and refocusing its portfolio to capitalize on emerging opportunities in the consumer goods market.
