A-Brands

Unilever Mulls $3bn Sale Of Some US Ice Cream Brands: Report

By Dayeeta Das
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British consumer goods giant Unilever is considering the sale of a portfolio of US ice cream brands such as Klondike and Breyers, that could be valued at as much as $3 billion (€2.9 billion), Bloomberg News reported on Thursday.

International labels Magnum and Ben & Jerry's are not part of the review, the Bloomberg News report said, citing people familiar with the matter.

Unilever chief executive Alan Jope said he would not comment on the rumours in an interview with CNBC.

The company was taking decisive action on slow growth parts of company's portfolio, Jope added.

Deliberations are ongoing and the company may still decide not to sell the brands, the report added.

A Rocky Year For Unilever

The maker of Dove soap has had a rocky year, including its three unsuccessful bids for the consumer health arm of GSK, the arrival of activist investor Nelson Peltz and plans for CEO Alan Jope to retire at the end of 2023.

In June, Unilever sold its Ben & Jerry's ice cream business in Israel to its local licensee for an undisclosed sum, aiming to smooth over a diplomatic dispute. Ben & Jerry's and Unilever have been in a bitter legal dispute over the sale ever since.

Unilever has raised prices faster than its biggest rivals P&G and Nestlé since the middle of 2021, with its price increases hitting an all-time high of 12.5% in the third quarter.

The last time Unilever was close to such large rises was at the height of the global financial crisis. In the final quarter of 2008, its prices rose about 9%, dwarfing P&G's 4% hikes.

News by Reuters, edited by by ESM – your source for the latest A-Brands news. Click subscribe to sign up to ESM: European Supermarket Magazine.

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