Unilever spinning off ice cream business, including Ben & Jerry’s, Magnum, Cornetto

Unilever is spinning off its Ice Cream business. The company is confident in the ice cream department’s future growth, but its operating model doesn’t fit Unilever’s current strategy, it said on Tuesday.

Unilever wants to focus more on “a portfolio of unmissably superior brands with strong positions in highly attractive categories that have complementary operating models,” the company said. “Ice Cream has a very different operating model, and as a result, the Board has decided that the separation of Ice Cream best serves the future growth of both Ice Cream and Unilever.”

Unilever’s ice cream brands - including Cornetto, Ben & Jerry’s, and Magnum - together delivered a turnover of 7.9 billion euros in 2023. “The separation of Ice Cream will create a world-leading business, operating in a highly attractive category,” Unilever said, pointing out that its brands cover five of the top ten ice cream brands in the world.

The split will most likely happen in a demerger, though the company is willing to consider other separation options “to maximize returns for shareholders.” The process will start immediately, and Unilever expects it to be completed by the end of 2025.

Spinning off Ice Cream will also allow Unilever to accelerate its Growth Action Plan, which is focused on doing fewer things better, the company said. After the split, Unilever will continue with its Beauty & Wellbeing, Personal Care, Home Care, and Nutrition businesses.