In a significant development for the food and beverage industry trends, UK-based FMCG multinational, Unilever, announced last year its plans for spinning off its ice-cream business, which comprises well-known brands like Ben & Jerry’s and Magnum.
According to Unilever, managing an ice-cream operation differs significantly from handling other aspects of the company. Therefore, the separation aims not only to streamline operations but also to achieve potential cost savings. This strategic move reflects broader trends in food manufacturing trends and food distribution trends within the industry.
Currently, Unilever is evaluating listing options for its ice-cream business, valued at approximately €15 billion, aiming to enhance its focus on food and drink innovation.
As reported by the Financial Times, one possible location for the listing is London, where Unilever is currently traded, strengthening its ties to local markets.
Conversely, the company is also considering Amsterdam and New York. Notably, the headquarters of the ice-cream division relocated from Rotterdam to Amsterdam last year, reflecting shifts in food processing technology and logistics.
The final decision regarding the listing location is anticipated to be revealed in March, although Unilever has opted not to provide additional comments at this time.
Government Intervention
This development comes in light of UK Chancellor of the Exchequer, Rachel Reeves, urging Unilever to maintain its base in London. Well aware of the food and drink regulations affecting the sector, she seeks to encourage the firm to float its ice-cream division in the UK.
Reeves held discussions with company CEO Hein Schumacher and the head of UK and Ireland business, Marc Woodward, last September, as reported by The Times, emphasizing the potential impact on the UK economy.
Given that Unilever ranks as the fourth largest company on the FTSE 100, the potential separation of its ice-cream business to Amsterdam or New York would pose significant challenges for the UK’s market stature.
Should the business decide to relocate to New York, it will align with the growing trend of UK companies expanding their operations across the Atlantic.