Unilever, the manufacturer of Magnum ice cream, has announced plans to streamline its operations. The decision will impact 7,500 employees globally, as part of its productivity programme.
Along with the job cuts, the company will also separate its ice cream business from its core operations in a bid to drive faster growth and higher margins. The London-listed FMCG (fast-moving consumer goods) giant disclosed these intentions in a statement released on 19 March, 2024 with the full separation of the ice cream division expected to be completed by the end of 2025.
According to the company, it wishes to concentrate increasingly on a portfolio of superior brands with strong positions in highly-attractive categories. This strategic move aims to leverage the company’s innovation, marketing, and go-to-market capabilities more effectively. Hence, recognising the distinct operating model of the ice cream segment, Unilever’s board has concluded that its separation will best serve the future growth of both the ice cream business and Unilever as a whole.
The separated ice cream business is anticipated to become a leading player in the global market, operating in a lucrative category with brands that collectively generated a turnover of €7.9 billion in 2023. Notable brands within this division include Wall’s, Magnum and Ben & Jerry’s, with significant presence in both in-home and out-of-home segments across the world.
Unilever expects the ice cream business to function with a capital structure comparable to other listed companies. Furthermore, the company also stated its willingness to explore alternative separation options to maximise shareholder returns.
Following the ice cream business separation, Unilever will operate under four distinct business groups encompassing beauty and well-being, personal care, home care and nutrition.
The move is anticipated to help the company save around 800 million euros over the next three years.
