Unilever Plans to Separate Ice Cream Business

CPG giant Unilever said Tuesday it plans to separate its ice cream division into a standalone business, reports The Wall Street Journal. The manufacturer said that it is considering listing the business as a separate entity or selling it off.

Brands in the division include Ben & Jerry’s, Magnum, Wall’s, Breyers, Talenti, Popsicle, and Klondike.

The plan is part of new Unilever CEO Hein Schumacher’s strategy to simplify the business and boost growth following underperformance in recent years, according to the report.

The manufacturer has been in the ice cream category since buying Wall’s in 1922. Its ice cream business brought in $8.6 billion in revenue in 2023 and includes five of the top 10 global brands in terms of sales.

Analysts have suggested Unilever sell its ice cream arm to boost growth, and the sector has posed challenges for the manufacturer. For example, Ben & Jerry’s sued the parent company in 2022 after Unilever sold its business in Israel without consultation.

The report also added that the performance of the ice cream business has been meager: in 2023, ice cream sales rose 2.3 percent, the weakest growth rate of any unit in the CPG giant’s portfolio. Full Story (Subscription Required)