Owner of Cornetto, Magnum and other summer favorites will “melt” its least profitable segment. Portugal escapes the impact (for now).
It won’t be long before the heat arrives, but the months of June, July and August may never be the same again after the news that arrived this week from Unileverowner of ice cream Hello. This summer will leave many of us “sad, alone and abandoned”: it could be one of the last summers we enjoy a Cornetto in Portugal.
The multinational is preparing to lay off 7500 workersin an attempt to revitalize its financial performance, and part of the consolidation plan involves “melting” the ice cream segment, which includes popular brands such as Magnum and Ben&Jerry’s.
The decision should be implemented by the end of 2025, and does not necessarily mean the extinction of Magnum or Cornetto (or any Ólá ice cream), but it places a Question Mark in its future — there is still a fog over the contours of the operation.
What we know is that, in practice, Hello and Ben&Jerry’s ice creams could soon leave Portugal.
A “different” business (and the least profitable)
One of the main problems highlighted by the group, which shared the news this Tuesday, is the fact that ice creams are seasonal productssomething that, along with the lack of overlap in supply chains with other Univeler businesses, made the sector the least profitable of the company’s five business categories.
Despite everything, the division is responsible for 16% of the group’s total sales, which now sees an opportunity to focus on other business areas.
“Separating the business best serves the future growth of both ice cream and Unilever,” the company said in a statement. “Ice cream really is a different business which, in fact, is already managed separately from the other units”, explained the CEO.
The sale of the ice creams — a decision that was received with encouragement from the stock exchange, which saw increases in Unilever shares of around 5% — should yield 17 billion dollars (around 15.6 billion euros), according to the Barclays assessment cited by Financial Times.
Portugal should escape the impact… for now.
“Not much is known, but it is expected that there will be nothing massive,” says a source close to Unilever to Jornal de Negócios, who highlights: “perhaps there will be changes in two years.”
“Don’t forget me like that.” Hey… Has the time come to fulfill Hello’s wish?
Tomás Guimarães, ZAP //
