Unilever is delaying the spin-off of its ice cream business due to the U.S. government shutdown, though it still expects to complete the divestiture in 2025.
The CPG giant initially planned to separate The Magnum Ice Cream Company on Nov. 10, creating the world’s largest ice cream-only business with $9.3 billion in sales and a portfolio of brands such as Ben & Jerry’s, Talenti and Klondike.
But in a filing with the Securities and Exchange Commission on Tuesday, Unilever said it has been unable to get clearance from the regulatory agency declaring the registration statement effective. The SEC's approval is needed for Magnum’s shares to be listed and traded on the New York Stock Exchange.
“The preparatory work for the Demerger is on track and progressing well, and Unilever remains committed to and confident of implementing the Demerger in 2025,” Unilever added in its SEC filing.
The U.S. government has been shut down since Oct. 1, with Congress failing to agree on a federal budget. The SEC's operations have remained limited as a result, impacting the agency's ability to review and respond to company filings or shareholder proposals.
Unilever began laying the groundwork in 2024 to separate its ice cream business as part of a sweeping restructuring plan aimed at simplifying the conglomerate, which also sells Hellmann’s mayonnaise, Axe deodorant and Dove soap. The company said ice cream has “distinct characteristics” compared to other parts of its business requiring more focused attention, including more seasonality and greater capital intensity.
Lisa Vortsman, U.S. chief marketing and innovation officer for The Magnum Ice Cream Company, recently told Food Dive the ability to focus just on frozen novelties will allow the new business to prioritize innovation, distribution and further strengthen its supply chain.
The spun-out Magnum will also benefit from its premium leaning portfolio and a product mix that appeals to a wide range of consumers.
“It’s a new frontier. The focus will allow us to unlock a lot of the opportunities of what these brands are capable of,” Vortsman said. “We have the [ability] and the knowledge and the expertise to take indulgence to a different level.”
