Will Unilever’s other food brands follow the ice cream brands out the door? It seems a real possibility: the multinational is exploring ways to streamline its portfolio. However, this process is still in its early stages.
Various options on the table
According to Bloomberg, Unilever is indeed considering a potential spin-off of its food division. The producer of brands such as Knorr and Hellmann’s is reportedly in talks with advisors about the possible options. For example, the company could divest all its food brands, or retain a few top brands. Analysts believe a sale could net Unilever tens of billions of dollars. No decision is expected before 2027.
The reports are not surprising: rumors to that effect have been circulating for years and were further fueled by the recent spin-off of the ice cream division, which received a separate stock market listing as The Magnum Ice Cream Company. In addition, Unilever has already divested several non-core food businesses in recent years, including the tea division, margarines, and brands such as De Vegetarische Slager, Conimex, and Unox. Under CEO Fernando Fernandez, Unilever is continuing its transformation from a group that sells food products to one focused on beauty, personal care, and wellness. After all, the growth potential in food is simply lower.
