Unilever speculated to sell off Ben & Jerry’s in dramatic shake-up

Unilever may sell off its Ben & Jerry’s brand in a dramatic shake-up of the consumer goods giant. The sale is likely to be made alongside the rest of the ice-cream division, which includes Magnum and Carte D’Or, reports stated recently.

Sources said this would slim down the group, letting it focus on faster-growing health and beauty brands. 

The ice-cream unit generates £6billion in annual sales while profit margins in the sector are about 10 per cent. In a trading update for the first quarter of this year, Unilever said sales at its ice-cream brands were boosted by the easing of Covid restrictions in Europe and strong sales in China. 

Private equity firms could acquire the ice-cream unit, add smaller brands, and cut costs, This Is Money reported, adding that Unilever has been exploring options for the ice-cream unit for a while.

There has been a flurry of speculation that parts of Unilever, whose brands also include Dove and Marmite, will be sold since one of the world’s most powerful activist investors, Nelson Peltz, was appointed to the board last month. 

Unilever is unlikely to begin any sale until next year as inflation limits consumer spending, stated the reports, adding that concerns about the impact of rising ingredient and labour costs could also affect the timing of any sell-off.

The speculation comes as  Kellogg’s said it would split into three firms- its core global snacking business, a North American cereal firm and a plant-based food company.