Unilever has unexpectedly halted its plans to sell its expansive ice cream division, opting instead for a potential spin-off.
In a striking turn of events, Unilever has shifted its strategy regarding its ice cream business, valued at £15 billion. Initially planning on selling the division to streamline operations, Unilever is now considering an independent listing for the unit. Despite the cessation of sale plans, there remains a possibility that a suitable bidder could materialise, according to city sources referenced by the Financial Times.
The decision follows Unilever’s earlier announcement in March, where it intended to separate the ice cream segment from its core business. This strategy was aimed at creating a more efficient and accountable company structure. However, challenges soon emerged, particularly the daunting task of finding an appropriate buyer for such large and established brands. The division includes well-known names like Magnum, Wall’s, and Ben & Jerry’s, each contributing to the complexity of the sale.
Potential buyers faced significant hurdles, with the vastness of the product portfolio and the inherent seasonality of ice cream sales in Europe posing substantial risks. Moreover, performance issues within the ice cream business added to the challenges of negotiating such a significant transaction.
The narrative surrounding Unilever took another turn when the company found itself embroiled in a legal dispute with its own brand, Ben & Jerry’s. The ice cream brand accused Unilever of inhibiting its public commentary supporting Palestinian refugees, an action they claimed breached a 2022 settlement agreement. This complicated matter highlights ongoing tensions within the company, particularly regarding brand management and social responsibility commitments.
As Unilever moves forward, the future of its ice cream division remains uncertain, with the possibility of a spin-off or an unexpected bid. This pivotal decision underscores both the challenges and opportunities inherent in managing a global brand with diverse interests.
