The potential relocation of Unilever’s £15bn ice cream listing from Britain to the Netherlands is stirring economic concerns.
- Gerry Grimstone urged the UK to appoint an investment minister to avoid losing Unilever’s ice cream business.
- Dutch officials encouraging Unilever to list on Euronext pose a competitive threat to the UK.
- Unilever plans to separate its ice cream division to focus on brand strength and performance.
- The ice cream division’s relocation to the Netherlands is seen as increasingly probable.
The UK may lose Unilever’s £15bn ice cream listing to the Netherlands if strategic governmental actions are not taken. Former investment minister Gerry Grimstone has highlighted the critical need for appointing an investment minister, emphasizing the role’s demands for familiarity with Whitehall and investor relations. The neglect in establishing this position threatens to undermine Britain’s economic appeal.
Gerry Grimstone’s concerns arise amid reports that Dirk Beljaarts, the Netherlands’ minister of economic affairs, has actively engaged with Unilever’s CEO Hein Schumacher. During their meeting, Beljaarts reportedly encouraged Unilever to consider the Euronext exchange for its ice cream listing. This interaction underscores the Netherlands’ proactive approach to capturing valuable economic opportunities, directly challenging the UK’s competitive stance.
Unilever’s strategy to spin off its ice cream division was initially announced in March, aiming to cultivate a ‘leaner and more accountable’ organization. This separation targets enhancing brand development for popular labels such as Magnum, Ben & Jerry’s, Wall’s, and Cornetto. Unilever perceives these changes as essential for establishing a world-leading business structure and enhancing overall brand performance.
Managing the ice cream division from the Netherlands appears increasingly viable. Unilever has expressed that the Netherlands offers a promising environment for this endeavor, as stated by Hein Schumacher on Dutch television. Schumacher noted, ‘The most likely route is to split off with a separate stock exchange listing and its own head office.’ The current structure, with London-listed Unilever and its significant presence in the US market, places the Netherlands in a favorable position for this transition.
The potential shift of Unilever’s ice cream listing to the Netherlands highlights the urgent need for strategic governmental action in the UK.
