Ben & Jerry’s parent will spin off its ice cream division

Unilever, the owner of Ben & Jerry’s and other popular ice cream brands, has announced plans to separate its ice cream division into a stand-alone business or possibly sell it altogether.

The new company will encompass five of the world’s top-selling ice cream brands, including Magnum, Ben & Jerry’s and Cornetto, which generated a combined sales of $8.6 billion last year.

Why?
The decision by the British conglomerate comes as part of a restructuring program aimed at saving $870 million over the next three years and simplifying operations to boost growth, per the WSJ.

It would affect 7,500 jobs globally.

CEO Hein Schumacher highlighted the unique characteristics of the ice cream business, such as seasonal demand and specialized supply chains, as reasons for the separation.

The decision reflects broader industry trends, as other consumer-goods companies like Nestle have also divested their ice cream businesses.

Nestle struck a deal in 2019 to sell its US ice cream businesses, including Haagen-Dazs and Dreyer’s.