Unilever has said its ice cream division, which includes Wall’s, Magnum and Ben & Jerry’s, will split off in a move completed by the end of 2025, amid claims it has been underperforming.
The ice cream business will likely be shed in a demerger, reports have said.
The news comes alongside announcements that Unilever will be cutting jobs, mostly affecting office staff, at its global workforce across the next three years.
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“The separation of ice cream and the delivery of the productivity programme will help create a simpler, more focused, and higher performing Unilever,” said Unilever’s chairman Ian Meakins.
“It will also create a world-leading ice cream business, with strong growth prospects and an exciting future as a standalone business.”
Matt Britzman, equity research analyst at Hargreaves Lansdown, told BBC the move was “not a huge shock” as the ice cream unit had been underperforming.
“It doesn’t sound like there’s a buyer lined up so it looks like a demerger will be the choice,” said Britzman. “Investors can then decide whether they want to keep the new ice cream business or sell into the market.”
A direct sale of the business is also a possibility.
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