The latest news, trends, analysis, interviews and podcasts from the global food and beverage industry

Unilever has revealed plans to spin off its ice cream business and could cut around 7,500 jobs as part of a broader cost-saving programme. The separation of Unilever’s ice cream unit, which includes the brands Ben & Jerry’s, Walls and Magnum, is expected to be complete by the end of next year. In a press statement, Unilever said that its ice cream business has a very different operating model to its other businesses, therefore its separation will enable a better focus on the company’s ‘complementary’ segments of nutrition, beauty and wellbeing, personal care and home care. The ice cream division delivered a €7.9 billion turnover in 2023, and is expected to gain more operational and financial flexibility as a standalone business. A demerger is the most likely separation route, but other options for separation will be considered to maximise returns for shareholders, Unilever confirmed. Meanwhile, a global productivity programme expected to save approximately €800 million in costs over the next three years is set to affect 7,500 jobs – around 5.9% of Unilever’s 128,000-strong global workforce. The impacted jobs will mainly be office-based, with restructuring costs estimated at around 1.2% of overall turnover during the three-year period. The proposed changes will be subject to a consultation process. Unilever said the productivity programme will drive efficiencies through technology-led interventions, process standardisation and operational centres of excellence. Operational dis-synergies from the separation of the ice cream business are expected to be more than offset by the programme, which aims to accelerate R&D and support margin improvement over time. Following the changes, Unilever aims to deliver mid-single digit underlying sales growth and ‘modest’ margin improvement. Ian Meakins, the company’s chair, said that sharpening its portfolio will see Unilever create a simpler, more focused and higher performing business model. Hein Schumacher, CEO at Unilever, commented: “Under the Growth Action Plan we have committed to do fewer things, better, and with greater impact. The changes we are announcing today will help us accelerate that plan, focusing our business and our resources on global or scalable brands where we can apply our leading innovation, technology and go-to-market capabilities across complementary operating models.” The company’s shares increased by 5% following the announcement.