Unilever has unveiled plans to expedite its Growth Action Plan (GAP) by separating its Ice Cream business and launching a productivity program. The company aims to focus on a portfolio of superior brands in attractive categories with complementary operating models, where it can effectively apply its innovation, marketing, and go-to-market capabilities.
The decision to separate Ice Cream as a standalone business is based on the belief that it has a different operating model compared to Unilever’s other businesses, and the Board is convinced that this move will best serve the future growth of both Ice Cream and Unilever. Following the separation, Unilever will operate four Business Groups across Beauty & Wellbeing, Personal Care, Home Care, and Nutrition, each with complementary routes to market, R&D, manufacturing, and distribution systems.
The separation of Ice Cream is expected to accelerate the implementation of Unilever’s GAP, which focuses on driving consistent and stronger topline growth, enhancing productivity and simplicity, and stepping up the company’s performance culture. Additionally, Unilever will continue to optimize its portfolio within the four Business Groups towards higher growth spaces and through brands with global reach or significant potential to scale.
The Unilever Board is confident that the future growth potential of Ice Cream will be better realized under a different ownership structure. With distinct characteristics such as a supply chain and point of sale supporting frozen goods, a different channel landscape, more seasonality, and greater capital intensity, the separation of Ice Cream is expected to create a world-leading business in a highly attractive category. The Ice Cream business includes five of the top 10 selling global ice cream brands, such as Wall’s, Magnum, and Ben & Jerry’s, with exposure in both the in-home and out-of-home segments across a global footprint.
Under new leadership, Ice Cream is already making significant strides and is poised for further growth and success under its standalone structure.
