Saturday, July 20, 2024

Unilever Growth Plan with Ice Cream division split and productivity launch

Unilever has unveiled plans to diversify its ice cream business, accelerate its Growth Action Plan (GAP), and launch a major efficiency project.

Unilever Growth Plan with Ice Cream

The company’s management believes that Unilever should focus more on a select group of manufacturers that stand out in luxury categories, where it can best leverage its innovation, marketing and distribution strengths And it will be profitable for Unilever.

After the split, Unilever will become a leaner company, focusing on four key areas: beauty and wellness, personal care, home care, and nutrition. This division is unified in market theory, research, product development and distribution, and covers both established and emerging markets

The ice cream slice will help Unilever’s employees accelerate the implementation of GAP, which aims to streamline operations for stronger growth, productivity, and a dynamic corporate culture. Unilever will also continue to optimize its brand portfolio across these four divisions, prioritizing high-growth areas and globally recognized brands.

It is believed that ice cream’s unique characteristics and growth patterns are best suited to different ownership. With iconic brands like Wall’s, Magnum, Ben & Jerry’s and others generating significant revenue, the established ice cream business is poised to thrive in the home and outdoor markets

Under new leadership, Ice Cream is already making operational changes aimed at increasing productivity through efficiencies and innovation. As an independent company, Ice Cream will have the freedom to pursue its strategy, optimize its operations, and expand its distribution channels.

While going out of business is a viable option to slice the ice cream, other options will be explored to maximize shareholder returns. The separation process will begin immediately and is expected to be completed by the end of 2025.

In addition to separating ice cream, Unilever plans to embark on efficiency programs to drive further growth. The project aims to save about 800 million euros over three years, to offset the cost of cracking ice cream. It will streamline operations, leverage technology, and reduce complexity, although around 7,500 jobs based in the central office will be affected worldwide.

The combined impact of the ice cream separation and the business plan will help Unilever focus on its strongest products, aiming for bottom-line growth in the mid-single digits and improved profitability after the separation

Unilever chairman Ian Meekins stressed that the board is committed to transforming Unilever into a high-growth, high-profit business, while CEO Hein Schumacher emphasized the importance of streamlining operations and continuous operations for growth with an emphasis on sustainable benefits. Both emphasized the company’s commitment to carrying out employment policies with care and respect for affected employees. For more information, visit www.unilever.com

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