CNBC's UK Exchange newsletter: The world’s biggest ice cream maker hopes the future’s sweet
The recent demerger of The Magnum Ice Cream Company (TMICC) from Unilever marks a significant event in the global ice cream market, with TMICC debuting on Amsterdam's Euronext at a valuation of €7.8 billion. Despite initial optimism, TMICC's stock faces challenges, including potential selling pressures from tracker funds and a lack of dividends in 2026, complicating its immediate trading outlook. TMICC aims for medium-term organic growth of 3%-5%, but competition from weight-loss trends poses risks. Meanwhile, Unilever seeks to enhance its focus on core brands, potentially leading to further divestments in its food division. The future trajectory for both entities remains uncertain as they navigate these market dynamics.
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TMICC's shares debuted on Amsterdam's Euronext, with secondary listings in London and New York, making it the largest listing on Euronext this year.
The company has a 21% global market share in the $87 billion ice cream market, compared to 11% for its nearest competitor, Froneri.
CEO Peter ter Kulve highlighted TMICC's shift towards healthier products, like Breyers CarbSmart, in response to changing consumer preferences.
Unilever retains a 19.9% stake in TMICC, which it plans to sell over the next five years, as part of its strategic realignment.
The demerger allows Unilever to concentrate on its 24 power brands that generate three-quarters of its sales, with plans to evaluate divestments in food brands.
Recent governance issues surrounding Ben & Jerry's have added complexity to TMICC’s operations, prompting leadership changes in its independent board.
Unilever's historical attempts at restructuring and divesting have not led to market re-ratings, raising questions about the efficacy of this latest move.