Unilever’s Magnum Ice Cream Spin-Off and Share Consolidation Explained (UL)

Neil Sharma
1 day ago
5 min read

A New Scoop for Unilever: Why the Ice Cream Spin-Off?

On March 19, 2024, Unilever announced its intention to separate its global ice cream business into a fully independent, publicly traded entity named The Magnum Ice Cream Company (TMICC). This separation is part of a broader effort to accelerate Unilever’s Growth Action Plan and sharpen its strategic focus.

Unilever’s board evaluated the fit and performance of its various business segments and concluded that the ice cream division, while successful, had limited synergies with the rest of the group. Ice cream operations operate with different supply chains, seasonality, customer behaviors, and innovation cycles compared to Unilever's beauty, personal care, home care, and food businesses.

This spin-off is expected to deliver benefits for both Unilever and TMICC:

For Unilever: A more focused operating model, optimized capital allocation, and a stronger platform for long-term margin expansion and innovation.
For TMICC: Freedom to tailor its strategy, brand positioning, and investments without being constrained by the priorities of a larger conglomerate.

The separation will result in TMICC being listed independently on multiple stock exchanges, allowing investors direct access to a pure-play ice cream leader.

What is The Magnum Ice Cream Company (TMICC)?

TMICC is not a new business being built from scratch. It is a global giant in its category with a rich portfolio of heritage brands and deep operational scale.

Key facts about TMICC:

Annual Revenue: €7.9 billion (2024)
Adj. EBITDA: €1.3 billion
Retail Market Share: 21 percent globally
Cabinet Fleet: Approx. 3 million, the largest in the world
Top Brands: Magnum, Wall’s, Ben & Jerry’s, Cornetto, Talenti, Popsicle, and Breyers

With operations in more than 60 countries and leading positions in each of its top ten markets, TMICC is set up as a category captain in both at-home and away-from-home consumption.

It also holds a unique position in the global cabinet infrastructure. These are branded freezer units placed in retail and foodservice outlets, providing TMICC with high visibility and on-the-spot purchasing opportunities. This asset is a critical enabler of brand activation and distribution control.

A Deep Dive into the Ice Cream Market Opportunity

Ice cream sits comfortably within the larger global snacking market, which reached a size of approximately €470 billion in 2024. Ice cream alone contributes around €75 billion of that figure, with expectations for continued annual growth between 3 and 4 percent.

What makes the market attractive is not just size, but the nature of consumer behavior and product economics.

Key Market Trends:

Indulgence and Premiumization Consumers are increasingly seeking indulgent experiences, driving strong demand for premium offerings. Brands like Magnum and Ben & Jerry’s cater precisely to this appetite for quality and experience.
Snacking Moments Ice cream fits naturally into daily snacking occasions, including refreshment, dessert, indulgent treats, and shared moments. TMICC's portfolio spans all of these use cases.
Digital Commerce Growth Ice cream has traditionally relied on in-store sales, but that is changing. Digital channels including delivery platforms and quick commerce are growing at nearly 9 percent CAGR. TMICC is actively investing in its capabilities across digital commerce and omnichannel experiences.
Emerging Market Upside Countries such as India, Indonesia, and Mexico offer untapped potential, with lower per capita consumption but rapidly growing middle classes. TMICC’s distribution model and cabinet penetration strategies are tailored to meet this demand surge.
Seasonality and Resilience Despite being a seasonal product in some markets, ice cream has shown remarkable resilience. It quickly recovered from pandemic-related disruptions and continued its growth trajectory by 2022.

These trends create a foundation not only for stable revenue but also for strong margins and capital efficiency. In fact, the return on invested capital in the snacking segment remains higher than the broader consumer packaged goods average.

TMICC's Operating Model and Vision

TMICC’s strategy is built on a focused operating model that prioritizes agility, growth, and long-term brand health.

Strategic Pillars:

Growth: Innovate across formats, flavor profiles, and packaging to capture new snacking occasions
Productivity: Streamline operations and invest in cost-effective supply chains and data-driven logistics
Reinvestment: Put capital back into brand-building, cabinet expansion, and global scaling
Sustainability: Implement environmental, social, and governance practices to reduce emissions, improve nutrition, and promote equity

Cultural Shift:

TMICC is structured to support a “front-line first” philosophy, with empowered regional teams, performance-linked incentives, and a strong focus on consumer intimacy. From leadership to the factory floor, the goal is to build a culture where speed, experimentation, and local relevance drive results.

Shareholder Impact: Demerger and Share Consolidation

Shareholders should prepare for two significant financial events: the demerger of TMICC and a concurrent share consolidation by Unilever.

Demerger Details:

Timing: Expected mid-November 2025
Form: Shareholders of Unilever will receive shares in TMICC in proportion to their holdings
Markets: TMICC will be listed on the London Stock Exchange, Euronext Amsterdam, and the New York Stock Exchange via American Depositary Shares

Share Consolidation:

To maintain comparability and manage rounding issues post-demerger, Unilever PLC will consolidate its shares. This means that the number of shares in issue will be reduced, but the total economic value of holdings remains equivalent.

Important Dates:

General Meeting to Approve Transaction: October 21, 2025
Deadline for Proxy Submission: October 19, 2025
Expected Share Consolidation Effective Date: November 11, 2025

These structural changes are intended to optimize Unilever’s post-demerger capital structure and minimize disruption for investors across geographies.

Risks and Conditions

This transaction is subject to various regulatory and market conditions, including:

Stock exchange approvals
Prospectus publication and investor disclosures
Board assessment of market conditions

Unilever has clearly stated it will only proceed if it determines that the demerger and share consolidation are in the best interests of shareholders and American Depositary Share holders.

Wrapping It Up

Unilever’s decision to spin off its ice cream business into The Magnum Ice Cream Company marks a pivotal transformation in its corporate structure. It is a calculated move that sharpens Unilever’s focus while giving TMICC the independence to unlock new growth opportunities.

For shareholders, the deal provides a chance to benefit from two distinct investment profiles: a global consumer goods leader in Unilever and a focused category innovator in TMICC. With clear strategy, strong market fundamentals, and compelling brand equity, TMICC is positioned to deliver value from day one.

Investors should stay informed, review official documents closely, and consult advisers as they navigate the transition.

FAQs: Unilever Ice Cream Demerger

Will I receive TMICC shares automatically?

Yes. If you hold Unilever shares at the record date, you will receive TMICC shares in proportion to your holdings.

Is there a cost associated with the new shares?

No. The new shares are issued as part of the spin-off and require no additional payment from existing shareholders.

What will happen to the Unilever shares I already hold?

They will be adjusted through a share consolidation, but the overall value of your holdings will not change.

Where can I trade TMICC shares?

TMICC will be listed on Euronext Amsterdam and the London Stock Exchange. TMICC ADSs will be available in the United States through the NYSE.

Will TMICC issue a dividend?

The dividend policy for TMICC will be communicated post-listing. TMICC aims to follow a disciplined approach to capital returns.

What happens if the demerger is postponed or canceled?

If regulatory or market conditions are not favorable, Unilever reserves the right to delay or not proceed with the separation.

Financial Disclaimer

This article is for informational purposes only and does not constitute financial, legal, or tax advice. Investors are strongly encouraged to consult their financial adviser, tax professional, or legal counsel regarding the implications of the TMICC demerger and Unilever share consolidation. All investment decisions should be made based on personal circumstances and professional advice.

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