Unilever is moving forward with plans to spin off its ice cream division, which generated €8.3 billion in sales last year and holds a 20% global market share. The division, home to popular brands such as Magnum, Cornetto, and Wall’s, could be valued as high as £15 billion. This move aligns with Unilever’s strategy to focus on higher-growth segments, particularly in beauty and health.
Revenue from the ice cream business has increased mainly through price hikes, although volume sales have experienced a decline. The division’s operational demands, which include complex cold chain logistics, contrast with Unilever’s core consumer goods operations, making the spin-off a strategic step.
This divestment is part of a broader trend in Unilever’s business strategy. In 2023, the company sold its Elida Beauty division and other non-core brands as it aimed to streamline operations and concentrate on its top 30 brands. Unilever also announced significant workforce reductions, cutting 7,500 jobs globally, marking its largest layoff in five years.
The ice cream division has attracted strong market interest, with private equity firms like Advent International, Blackstone, and CVC Capital having previously explored bids. Unilever has since opted for a public offering, which, if successful, would become the largest-ever IPO for an ice cream business. This would position the newly independent company for fresh investment and future innovation.
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