Unilever has announced the closure of its ice-cream factory in Veliko Tarnovo, Bulgaria, as part of its strategy to separate its ice-cream division from the broader consumer goods business. The closure is scheduled for April 2025, with production being shifted to a nearby facility in Suceava, Romania. While a company spokesperson did not confirm whether the closure was part of a larger consolidation effort within the ice-cream sector, they emphasized that the move would support production synergies and sustainable long-term development.
The London-based company had previously revealed plans to spin off its ice-cream business in March 2024, calling it a demerger. In November, Unilever quashed rumors about a potential sale of the ice-cream division to private investors, confirming that it would pursue a spin-off through a separate listing by the end of 2025. The ice-cream unit includes popular brands such as Ben & Jerry’s and Magnum.
In addition to the changes in Bulgaria, Unilever also revealed plans to separate its ice-cream business in India from its Hindustan Unilever subsidiary, with intentions to list the unit locally. The company is also transferring ownership of its Indonesian ice-cream assets to PT The Magnum Ice Cream Indonesia, a local holding company.
Regarding the impact on jobs in Bulgaria, Unilever declined to provide further details but assured that the product variety for Bulgarian consumers would remain unchanged, and the company would continue investing in the region.
As the spin-off of Unilever’s ice-cream business approaches, reports surfaced on January 31 that the company is considering a New York listing for the unit. Bloomberg’s sources indicated that a dual listing in both the US and Europe—likely in London or Amsterdam—was also being evaluated. However, Unilever did not comment on the speculation, stating that no decision had been made.
Barclays analysts, in a research note on February 3, discussed the potential tax implications of a listing in Amsterdam, estimating a €2bn liability. They suggested a joint UK/US listing could mitigate the risk of shareholder pushback, as many of Unilever’s investors are based in the US and UK. The analysts also noted that a US-only listing might result in a higher valuation, although this could be impacted by broader market conditions.
The ice-cream business remains a key revenue driver for Unilever, generating €7bn in revenue during the first nine months of 2024, with a 3.6% underlying sales growth. In comparison, the nutrition division, which includes brands like Marmite and Knorr, posted €9.9bn in sales, reflecting a 2.6% growth.
Unilever’s total group revenue for the period stood at €46.4bn, with an overall underlying sales growth of 1.3%.
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