The ice cream industry is one that Unilever intends to leave at some point. The most likely outcome will be through a spin off into a standalone company; but, management has stated that they will investigate other options as well. Based on the information provided by the company, the process of separating the business will start immediately and is anticipated to be finished by the end of the year 2025. Ben & Jerry’s, Magnum, and Wall’s are just some of the brands that are part of Unilever’s ice cream division, which is projected to generate sales of €7.9 billion ($8.57 billion) in 2023. According to a statement released by the company, “Ice cream is already making significant operational changes at pace that are expected to drive stronger performance.”
These changes are being implemented under new leadership. Among these are increased productivity and efficiencies, the rationalization of products, and the investment that lies behind key inventions. “As a standalone, more focused business, ice cream’s management team will have operational and financial flexibility to grow its business, allocate capital and resources in support of the company’s distinct strategy, including further optimizing its manufacturing and logistics network, and developing wide-reaching, flexible, distribution channels over and above the changes that are currently underway in the business.”
Additionally, the company announced that it will be launching a productivity initiative that will last for three years and is anticipated to result in cost reductions of roughly €800 million ($868 million). According to the corporation, the cost reduction initiative will participate in the process of compensating for the negative operational synergies that would result from the separation of the ice cream business. “By simplifying our portfolio and driving greater productivity, we will be able to further unlock the potential of this business, which will support our ambition to position Unilever as a world-leading consumer goods company that delivers strong, sustainable growth and enhanced profitability,” said Hans Schumacher, the chief executive officer of Unilever.
