Unilever plans to spin off Ben & Jerry’s and Magnum ice cream business

In a bid to improve profits, Unilever has announced plans to separate its ice cream division, which includes popular brands like Ben & Jerry’s and Magnum, into a standalone business. The company plans to cut around 7,500 office-based jobs globally, with the impact on Vermont, where Ben & Jerry’s is headquartered in South Burlington, remaining unclear.

The restructuring is expected to result in cost savings of approximately $870 million over the next three years. Following the announcement, Unilever’s share price increased by more than 5%. The company has been under pressure from activist investors to make changes, with its stock price declining by about 6% in the past year.

According to Unilever, the decision to separate the ice cream business is based on the unique characteristics and needs of the industry compared to its other operations. The company aims to focus on higher growth and margins to deliver better results for its stakeholders.

Ian Meakins, chair of Unilever, stated that the company is committed to transforming into a higher-performing business. The separation of the ice cream division is expected to simplify and focus Unilever’s operations, creating a stronger and more competitive business in the ice cream industry.

Unilever’s ice cream division reported sales of $8.5 billion in 2023. For more information or inquiries, contact Dan D’Ambrosio at 660-1841 or ddambrosi@gannett.com. Follow him on Twitter @DanDambrosioVT

By Riley Johnson

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