Magnum Ice Cream announced on Wednesday that it has no intentions of selling off Ben & Jerry’s, despite recent rumors. Instead, the company plans to focus on regaining market share and enhancing sales as Unilever’s spin-off of Magnum Ice Cream Company draws near.
Unilever anticipates that its ice cream division, which includes brands such as Magnum, Ben & Jerry’s, Wall’s, and Cornetto, will account for just over one-fifth of the approximately US$88 billion global ice cream market. This places the company in direct competition with rivals like the Nestle-supported Froneri.
Magnum has been operating independently from Unilever for some time, and following years of dwindling ice cream market share and stationary profits, CEO Peter ter Kulve stated that the shift has enabled the company to invest in supply chains, sales, and distribution.
“We experienced a significant increase in market share last year,” ter Kulve commented.
Ben & Jerry’s made headlines at an investor day preceding the mid-November listing on Tuesday, reiterating their desire for an independent spin-off following years of conflict regarding the US brand’s outspoken stance on Gaza.
When questioned about a proposal led by co-founders Ben Cohen and Jerry Greenfield to purchase the brand last year, ter Kulve replied, “I have not been privy to any discussion between Unilever and Ben & Jerry. Ben & Jerry’s is not for sale.”
Following the Magnum listing, Unilever will retain a stake of less than 20 percent. As for a reported 15 billion euro (US$17.55 billion) valuation, ter Kulve responded that the market would be the deciding factor.
Magnum CFO Abhijit Bhattacharya stated that the split would allow Unilever to concentrate its efforts, while providing Magnum with an opportunity to increase its margins. Bhattacharya explained that the terms of the demerger, which provide every Unilever shareholder with a proportional stake in Magnum, protect the company from the market volatility that an initial public offering might face.
However, the newly formed ice cream business will serve as a test for investor interest in a product that is high in sugar, especially at a time when the Trump administration is advocating for healthier lifestyle choices in America.
Ter Kulve revealed that Magnum has eliminated most artificial coloring and is working on reducing sugar content as long as it doesn’t compromise the taste. “It has to taste fabulous because actually making very healthy ice cream products that nobody likes is a useless exercise,” ter Kulve stated.
Is Magnum planning to sell Ben & Jerry’s?
No, Magnum has clearly stated that Ben & Jerry’s is not for sale.
What is Magnum’s strategy for the future?
Magnum plans to focus on regaining market share and boosting sales, particularly following the upcoming spin-off from Unilever.
What changes is Magnum making in response to health trends?
Magnum has removed most artificial coloring from its products and is working towards reducing sugar content without compromising on taste.
