Unilever’s ownership of the eccentric ice cream manufacturer Ben & Jerry’s is nearing the end of its journey, which has been marked by several challenges. On Tuesday, the British consumer goods giant said that it intends to separate the brand from its other ice cream companies and spin off the brand from the company. The decision was made by Unilever, which stated in its release that it was based on the board’s opinion that the business ought to concentrate on “superior brands with strong positions in highly attractive categories that have complementary operating models.” Magnum and Cornetto are two of the additional ice cream brands that will be included in the spinoff that will be created by Unilever.
The companies that manufacture ice cream operate under “a very different operating model, and as a result the board has decided that the separation of ice cream best serves the future growth of both ice cream and Unilever,” according to the announcement. Additional brands of ice cream that are manufactured by Unilever include Kwality Wall’s, Magnum, and Cornetto. According to Bloomberg, the profit margin that the corporation makes from the production of ice cream is less than half of what it makes from the sale of personal care goods for the company. The company Unilever is also well-known for its products, which include Pepsodent, Vaseline, Hellman’s, and Dove soap.
Nelson Peltz, an activist investor, joined the board of directors of Unilever in 2022 with the intention of bringing about reforms within the consumer goods corporation. This led to the separation. According to Reuters, Peltz has expressed support for the appointment of Hein Schumacher as the new CEO of Unilever in 2023, as well as Schumacher’s strategy plan to reinvigorate the company. Additionally, Unilever, which has 128,000 employees across the globe, announced on Tuesday that it is initiating a “productivity program” that is anticipated to result in the elimination of approximately 7,500 jobs, the majority of which are office-based. By the end of the year 2025, it is anticipated that the ice cream division will have successfully completed its spinoff.
