Unilever has halted its plans to sell its ice cream business, opting instead for a potential independent spin-off.
Unilever, the global food and beverage company, has abandoned its intention to divest its ice cream division, currently valued at £15 billion. This change in strategy comes amid the company’s ongoing efforts to become more efficient and accountable. Initially, Unilever announced in March its plan to separate this segment from its core operations. However, challenges related to the magnitude of the brands within the division, including Magnum, Wall’s, and Ben & Jerry’s, made finding a suitable buyer difficult.
Despite the withdrawal from selling, the possibility of a bidder emerging remains, as some industry insiders suggest potential interest. The complexity of the portfolio and the seasonal nature of the ice cream market in Europe were factors that potentially hindered the sale, leading to the consideration of a spin-off. This strategic move could provide Unilever with a new pathway to streamline its operations without letting go of its iconic brands altogether.
Compounding the narrative, Unilever faces a legal challenge from Ben & Jerry’s, one of its well-known brands. The lawsuit accuses Unilever of stifling Ben & Jerry’s advocacy for Palestinian refugees, claiming such actions violate a 2022 settlement where Unilever agreed to uphold the brand’s social mission. This legal dispute adds another layer of complexity to Unilever’s current strategic maneuvers.
Unilever’s decision to reconsider the sale of its ice cream division highlights the challenges of managing a large and diverse portfolio. While a spin-off offers a viable alternative to enhance accountability, ongoing legal disputes could impact future strategies. The industry will undoubtedly watch closely as Unilever navigates these complex waters.
