In a strategic move, Unilever, the parent company of popular ice cream brands like Ben & Jerry’s, Magnum, and Popsicle, has announced its intention to separate its ice cream division into a standalone business, according to the Wall Street Journal. This decision marks a significant shift for the company, which has been in the ice cream business for over a century.
Unilever's ice cream business, which also includes Wall’s, Breyers, Talenti, and Klondike, generated revenue of $8.6 billion last year. However, the division has experienced challenges such as slower sales growth, particularly in its out-of-home segment, and increased competition in the frozen desserts market.
The decision to spin off the ice cream business follows ongoing tensions between Unilever and Ben & Jerry’s, with the latter filing a lawsuit against its parent company in 2022. Disputes arose over business decisions, including the sale of Ben & Jerry’s products in Israel and board member affiliations.
As part of the restructuring, Unilever expects around 7,500 jobs to be affected globally, aiming to save 800 million euros over the next three years. The company is also exploring options for listing the ice cream business as a separate entity or potential sale, with the goal of completing the separation by the end of next year.
Unilever's move reflects broader industry trends, as other consumer-goods companies have also reevaluated their ice cream businesses in recent years. The company remains focused on enhancing its overall performance and delivering sustained growth in the medium term.