Dive Brief:
- Unilever has created a separate business to house its margarine brands in North America and the U.K., leading to increased speculation that the company plans to exit the spreads business.
- The new unit, dubbed the Baking, Cooking, and Spreading Company, would include the "I Can't Believe It's Not Butter," Flora, and other spreads brands.
- The move comes as Unilever struggles to reverse declining sales of margarine.
Dive Insight:
Investors were pleased by the news. They've been pushing for a move like this for quite some time. Shares rose nearly 3% within moments of the announcement.
And while Unilever appears anxious to leave the spreads game, the company is investing heavily in businesses where it has seen success, such as frozen desserts. The news about margarine comes just a day after Unilever announced it would buy the Talenti Gelato company.