Unilever has announced that it is looking to split from its ice cream business, which includes Ben and Jerry’s and Magnum, as part of its 'growth action plan' (GAP) to save around €800m (£694m) over the next three years.

The consumer goods brand said that the future growth potential of its ice cream businesses will be “better delivered under a different ownership structure”.

Unilever added that the separation from this ice cream division will create a business which will operate in a "highly attractive category".

Together, the ice cream brands that Unilever currently owns, including Wall’s, Magnum and Ben and Jerry’s, featured in the top 10 selling ice cream brands globally, delivering a turnover of €7.9bn (£6.75bn) in 2023.

Equity analyst at Hargreaves Lansdown, Matt Britzman, said: "All in, these changes are expected to help drive mid-single-digit sales growth, an improvement from current targets of 3-5%, with margin expansion too.

"Action is what shareholders wanted to see from the new team at the top, and that’s what’s been delivered today. Ice cream always looked like the odd one out when you compare it to other product lines, and performance has struggled of late.

"It’s not a huge shock to see this move, but it’s something prior management wasn’t able to deliver. Unilever’s not an overly expensive name at the minute so expect markets to react positively to the news, perhaps more due to the decisive action than anything else."

As part of its plans to expand the GAP, Unilever will also cut around 7,500 office-based jobs globally, with restructuring costs expected to cost around 1.2% of group turnover for the next three years.

Chief executive officer at Unilever, Hein Schumacher, said: "Under the GAP, we have committed to do fewer things, better, and with greater impact. The changes we are announcing today will help us accelerate that plan, focusing our business and our resources on global or scalable brands where we can apply our leading innovation, technology and go-to-market capabilities across complementary operating models.

"Simplifying our portfolio and driving greater productivity will allow us to further unlock the potential of this business, supporting our ambition to position Unilever as a world-leading consumer goods company delivering strong, sustainable growth and enhanced profitability.

"We are committed to carrying out our productivity programme in consultation with employee representatives, and with respect and care for those of our people who are impacted."

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