Unilever has decided to halt the sale of its ice cream division, opting instead for a potential spin-off.
- The decision reflects challenges in finding buyers due to the division’s large brand portfolio.
- Unilever is considering an independent listing for the ice cream unit.
- The ice cream division includes well-known brands such as Magnum and Ben & Jerry’s.
- Legal issues have recently emerged between Unilever and Ben & Jerry’s over social mission statements.
Unilever, the food and drinks giant, has decided against selling its ice cream division, a move initially aimed at streamlining its operations. Instead, the company is looking into the possibility of spinning off this £15 billion business unit through an independent listing. The decision is strategic, reflecting the challenges encountered in finding suitable buyers for such an extensive portfolio, which includes globally recognized brands like Magnum, Wall’s, and Ben & Jerry’s.
Originally announced in March, the plan received setbacks as reports soon surfaced that Unilever was struggling to attract bids for the division. The size and scale of the brands appear to have deterred potential buyers, who might need to collaborate to make a viable offer. Further complicating the sale are issues related to the division’s performance and the logistical challenges of managing a large and seasonally sensitive product range in Europe.
A significant development occurred last week when Ben & Jerry’s, one of Unilever’s prominent ice cream brands, initiated a lawsuit against its parent company. The lawsuit alleges that Unilever has been attempting to silence Ben & Jerry’s public positions supporting Palestinian refugees, actions which the brand claims violate a 2022 confidential settlement. This legal conflict underscores ongoing tensions within the company, particularly affecting its brand image and strategic decisions.
Despite these challenges, Unilever remains committed to revisiting its strategy for the ice cream division, recognizing the potential for value creation through a spin-off. This could provide more independence for the division while allowing Unilever to maintain a leaner corporate structure.
Unilever’s strategic pivot towards a spin-off reflects its adaptability amidst complex market dynamics.
