Unilever exiting ice cream business, cutting 7500 jobs

Unilever is separating its ice cream business and focusing on four core business groups across beauty and well-being, personal care, home care and nutrition with complementary routes to market, and/or R&D, manufacturing and distribution systems.

The company’s board believes its ice cream business has a very different operating model, and future growth will be better delivered under a different ownership structure.

A media statement said the ice cream business has distinct characteristics compared with Unilever’s other operating businesses. These include a supply chain and point of sale that support frozen goods, a different channel landscape, more seasonality, and greater capital intensity. The business has five of the top 10 selling global ice cream brands including Wall’s, Magnum and Ben & Jerry’s, with exposure in both the in-home and out-of-home segments across a global footprint.

The separation activity will begin immediately, with full separation expected by the end of 2025.

In addition to the portfolio changes, Unilever intends to launch a comprehensive productivity programme, driving focus and faster growth through a leaner and more accountable organization, enabled by investment in technology. The proposed changes are expected to impact around 7,500 predominantly office-based roles globally, with total restructuring costs now anticipated to be around 1.2 per cent of group turnover for the next three years.

Ian Meakins, chair of Unilever said, “The Board is determined to transform Unilever into a higher-growth, higher-margin business that will deliver consistently for all stakeholders. Improving our performance and sharpening our portfolio are key to delivering the improved results we believe Unilever can achieve.

“The separation of Ice Cream and the delivery of the productivity programme will help create a simpler, more focused, and higher performing Unilever. It will also create a world-leading ice cream business, with strong growth prospects and an exciting future as a standalone business.”