Unilever Announces Spinoff of Ice Cream Division Including Ben & Jerry’s

Key Points

• Unilever is spinning off its ice cream business, including brands like Ben & Jerry's and Magnum, to focus on its core sectors.
• The move will result in the loss of around 7,500 office jobs globally and affect Unilever's turnover by about 1.2% for three years.
• The new ice cream company will control five top-selling brands and is expected to be listed on the stock market by the end of 2025.

In this news

Unilever, the consumer goods giant, has made a strategic decision to spin off its ice cream business, which includes popular brands like Ben & Jerry's, Magnum, Walls, Cornetto, and Breyers. This move is part of Unilever's plan to concentrate on its core sectors such as home care, personal care, beauty/well-being, and nutrition. The spinoff is expected to streamline operations and save the company approximately 800 million euros, equivalent to around $869.08 million US. However, it comes with a significant cost, as approximately 7,500 office jobs will be eliminated globally. This restructuring will affect Unilever's turnover by about 1.2% over the next three years, a slight increase from the initial estimate of 1%.

The new standalone ice cream company is poised to become a formidable player in the market, with projections showing it will control five of the top ten best-selling ice cream brands worldwide. The combined sales of these brands reached around $8.6 billion last year. The anticipated listing of the new company on the stock market by the end of 2025 offers a potential opportunity for those affected by job losses, as they may find employment within the newly formed entity. The market has responded positively to this announcement, with Unilever's shares rising by about 2.5% in Tuesday afternoon's trading session, reversing most of the losses experienced over the previous five days.

Looking ahead, the focus for Unilever is clear as it sheds its ice cream division to double down on its primary business areas. The new ice cream company, yet to be named, will have a strong portfolio and significant market presence. Investors and industry watchers will be keenly observing how this strategic move plays out in the long term, both for Unilever and the new ice cream business.