Unilever (NYSE:UL) announced steps to accelerate its “growth action plan”, through the separation of Ice Cream and the launch of a “major” productivity programme. The Ice Cream arm includes brands Wall’s, Magnum and Ben & Jerry’s.
“The board believes that Unilever should be increasingly focused on a portfolio of unmissably superior brands with strong positions in highly attractive categories that have complementary operating models. This is where the company can most effectively apply its innovation, marketing and go-to-market capabilities. Ice Cream has a very different operating model, and as a result the board has decided that the separation of Ice Cream best serves the future growth of both Ice Cream and Unilever,” Unilever said.
Following separation, the company said it will become “a simpler, more focused company”, operating four groups across Beauty & Wellbeing, Personal Care, Home Care and Nutrition. Unliver also announced plans to launch a “productivity programme”.
This will generate cost savings of around EUR800 million over the next three years, which will “more than” offset operational dis-synergies from the separation of Ice Cream.
The proposed changes are expected to impact around 7,500 predominantly office-based roles globally, the company said.