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In a move to streamline operations and focus on core strengths, Unilever has announced plans to spin off its ice cream unit, which is home to popular brands including Ben & Jerry’s and Magnum.
Unilever’s decision to spin off the ice cream unit follows a broader restructuring process initiated by CEO Hein Schumacher, who took the helm in July 2023.
The ice cream division that was born 7.9 billion euros In revenue in 2023, it will become an independent business entity with designs to improve the brands’ performance.
The restructuring is expected to affect approximately 7,500 jobs globally. The consumer products giant said in a statement that its goal is to create a leaner, more efficient company “enabled by investing in technology.”
The broader restructuring effort is expected to be completed by the end of 2025. Unilever says it will create four distinct business divisions – beauty and well-being, personal care, home care and nutrition – to drive growth and increase profitability.
The multinational also explained that its actions would lead to higher profits, saying: “The Board believes that Unilever should increasingly focus on a portfolio of superior, unmissable brands that have strong positions in highly attractive categories that have complementary operating models.” .
“After separating ice cream and implementing the productivity program, Unilever will have a structurally higher margin,” the company added.
The restructuring is expected to achieve total cost savings of approximately €800 million ($868 million) over the next three years.
After this announcement, Unilever shares rose 5.6% increasealthough it was later revised to trade up 4.1% at 9:20 a.m. London time.
Ben & Jerry’s dates back to 1978 when founders Ben Cohen and Jerry Greenfield opened their first store in Vermont. Acquired by Unilever in 2000, Ben & Jerry’s has demonstrated its long-term commitment to… Social and environmental reasonsstirring occasionally Controversy.
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