Ben & Jerry's Demands Freedom, Overshadowing Launch of New Ice Cream Giant
Speaking to Reuters on Wednesday, Magnum Ice Cream Company CEO Peter ter Kulve flatly dismissed the idea. "Ben & Jerry's is not for sale."
Unilever's attempt to smoothly introduce its new, standalone ice cream business was thrown into turmoil this week as activist brand Ben & Jerry's publicly renewed its demand for an independent sale, crashing the new entity's first-ever investor day.
The confrontation casts a shadow over the planned November stock market listing of the newly dubbed "Magnum Ice Cream Company," a powerhouse that includes iconic brands like Magnum, Wall's, and Cornetto. The spin-off is a key part of a broader strategy by parent company Unilever to streamline its portfolio and focus on faster-growing divisions.
A Frosty Reception at Investor Day
The drama unfolded on Tuesday as Peter ter Kulve, CEO of the Magnum Ice Cream Company, was presenting his vision for the future to investors. Seizing the moment, Ben & Jerry's reiterated its desire to be sold off separately, a culmination of years of public clashes with Unilever over the Vermont-based brand's vocal social and political stances, most notably regarding Gaza.
Speaking to Reuters on Wednesday, ter Kulve flatly dismissed the idea. "Ben & Jerry's is not for sale," he stated, adding he had "not been privy to any discussion" regarding a potential sale to the brand's co-founders, Ben Cohen and Jerry Greenfield, who have reportedly been trying to buy their company back.
A Strategy for Growth Amid Turmoil
Instead, ter Kulve attempted to steer the conversation back to business fundamentals. He outlined an ambitious strategy for the new company, which is expected to command over a fifth of the global ice cream market, valued at approximately $88 billion. The Magnum Ice Cream Company is targeting annual sales growth of 3-5% and aims to reverse years of declining market share under Unilever's ownership.
"Last year, we had a massive (market) share step up," ter Kulve said, crediting the new, focused structure that is already operating separately from Unilever. The spin-off, he argued, allows for dedicated investment in supply chains and distribution, which will boost performance.
The new company will be created through a demerger, where existing Unilever shareholders will receive a proportional stake in the new entity. Unilever will retain a minority stake of less than 20%. While some media reports have floated a valuation as high as 15 billion euros ($17.55 billion), ter Kulve was noncommittal, saying, "The market will decide."
Navigating Market Headwinds
Beyond the internal conflict with Ben & Jerry's, the Magnum Ice Cream Company faces external headwinds. It is launching into a market increasingly wary of high-sugar products, particularly in the United States, its largest market, where health initiatives are a growing priority.
Ter Kulve acknowledged the challenge, noting that the company is actively working to reduce sugar content across its product lines. However, he was adamant that flavor remains paramount. "It has to taste fabulous," he said, "because actually making very healthy ice cream products that nobody likes is a useless exercise."
As the November listing approaches, the Magnum Ice Cream Company finds itself in a challenging position. While its leadership projects confidence with a clear growth strategy, the unresolved and highly public dispute with its most famous activist brand presents a significant and immediate test of its corporate governance and brand management skills.