HUL’s exit from the ice cream segment raises critical questions about its future direction. Under CEO Rohit Jawa, the company faces the challenge of rediscovering its pre-liberalisation spirit of independence and innovation. Meanwhile, Unilever’s global CEO, Hein Schumacher, is busy reshaping the multinational giant by streamlining portfolios, optimizing operations, and focusing on premium offerings.

The ice cream business has long been an outlier in HUL’s portfolio. While brands like Ben & Jerry’s have faced political controversies globally, the overall category has delivered sluggish growth, with sales increasing by just 2-3% last year—one of the weakest across Unilever’s product divisions. Challenges such as a fragmented cold chain infrastructure, seasonal demand fluctuations, and low synergy with HUL’s core distribution network have made ice cream a tough segment to scale profitably.

Selling mass-market products like Surf and Lux by the carton is one thing, but building and maintaining a cold chain backbone for ice cream distribution is an entirely different challenge. Moreover, ice cream’s EBITDA margins and returns on capital employed remain among the lowest across HUL’s product categories.

While HUL trims its portfolio, industry rivals like ITC, Marico, Britannia, Dabur, and Godrej have largely stayed away from the complexities of the ice cream market. Nestlé, on the other hand, strategically offloaded its Häagen Dazs business to a joint venture with a private equity firm in Europe and the US.

For HUL, the spin-off represents not just an exit but an opportunity to refocus on its core strengths in personal care and home products. The move also signals the need for bold decisions across its broader portfolio, which spans everything from mayonnaise to premium skincare brands.

As HUL pivots towards a leaner, more agile business model, the onus is on Rohit Jawa to reignite the company’s innovative spirit and strategic agility. The path forward will require a delicate balance between nurturing high-growth categories and maintaining profitability in a challenging market landscape.

While the ice cream exit may melt away from its books, HUL’s next steps will be closely watched by investors and industry stakeholders eager to see if the FMCG giant can reclaim its position as a leader in strategic innovation.

The post HUL’s Ice Cream Exit: What Lies Ahead for the FMCG Giant? appeared first on Agro & Food Processing.

Whether it’s an intimate gathering or a festive year-end celebration, these cakes promise to leave a lasting impression.

Featured Delights

Pistachio and Caramel Ice Cream Cake: A Nutty Extravaganza

Savor the rich combination of flavours in this festive masterpiece.

• Layers: A caramel sponge cake filled with pistachio and caramel ice cream.
• Toppings: Ribbons of luscious caramel, whipped cream, and crunchy pistachio bits.
• Perfect For: Adding a touch of luxury to any celebration.

: The Party Favourite

Experience the magic of this ice cream roll cake that’s sure to wow your guests.

• Layers: Fan-favourite Lotus Biscoff ice cream layered with soft vanilla sponge.
• Toppings: Drizzled with golden caramel sauce and sprinkled with Biscoff crumble for an irresistible finish.
• Perfect For: Being the centerpiece of every dessert table.

Why Choose Baskin Robbins Ice Cream Cakes?

1. Unique Flavors: Combining premium ingredients with imaginative recipes.
2. Versatile Treats: Perfect for all occasions, from birthdays to year-end festivities.
3. Quality Assurance: Crafted with the same passion and care that Baskin Robbins is known for.

Celebrate this International Cake Day with indulgence and share a moment of sweetness with Baskin Robbins’ signature ice cream cakes. Make every slice count!

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The proposed demerger is designed to provide the ice-cream business—featuring brands such as Magnum, Cornetto, and Kwality Wall’s—a tailored operating model and supply chain suited to its distinct manufacturing and distribution needs. The scheme of arrangement for the demerger will be presented to the board and shareholders early next year for final approval.

In a statement, HUL emphasized that the new structure would create a leading listed ice-cream company in India, enabling focused management and greater strategic flexibility. “This step will unlock fair value for shareholders and give them an opportunity to participate in the growth journey of the ice cream category,” the company said.

The ice-cream business contributes approximately ₹2,000 crore, or 3% of HUL’s total sales. While HUL has a commanding position in home and personal care categories, it faces stiff competition in the Indian ice-cream market from brands like Amul, Mother Dairy, Vadilal, and Naturals.

The demerger is part of a broader strategy by parent company Unilever, which earlier this year announced a global restructuring of its ice-cream operations. Unilever, the world’s largest ice cream maker, is reportedly considering divesting the segment globally, with private equity firms among potential acquirers.

The Indian ice-cream business will continue to leverage Unilever’s expertise in branding, innovation, and product portfolio management, ensuring its growth trajectory aligns with global standards.

This strategic realignment underscores HUL’s commitment to driving focused growth while enhancing shareholder value in a competitive market.

The post HUL to Spin Off Ice-Cream Business into Independent Listed Entity appeared first on Agro & Food Processing.

The Croissant Cone Sundae is a perfect blend of European elegance and classic ice cream decadence. Served warm, the croissant cone encases cool, flavourful ice cream, complemented by rich toppings, offering a symphony of textures and tastes. Baskin Robbins India has introduced two signature variants of the dessert:

• Croissant Cone Sundae-Mississippi Mud:

A rich and indulgent pairing of Mississippi Mud ice cream with the buttery layers of a croissant, topped with chocolate syrup and crunchy chocolate chips.

• Croissant Cone Sundae-Cookies ‘N Cream:

A dream dessert for cookie lovers, this features Cookies ‘N Cream ice cream nestled in a flaky croissant, drizzled with chocolate, and sprinkled with cookie crumbles.

These sundaes promise to deliver a warm and cool contrast that is both satisfying and irresistible. Baskin Robbins aims to offer Indian customers a unique dessert experience with this blend of contemporary trends and classic flavours.

With the launch of Croissant Cone Sundaes, Baskin Robbins continues to innovate and bring international dessert trends to India, solidifying its position as a leading destination for ice cream lovers.

The post Baskin Robbins Introduces Viral Croissant Cone Sundaes to India appeared first on Agro & Food Processing.

With Gen Z’s penchant for snacks and portion-controlled treats, Magnum Bon Bons cater to a growing demand for indulgent, sharable products. Research shows 90% of Gen Z snacks daily, with a preference for unique flavors and textures.

Challenges in Miniaturization

Creating bite-sized versions of Magnum’s iconic ice cream posed significant challenges. Unlike full-sized bars, Bon Bons are finger-friendly and require precise engineering to replicate Magnum’s signature taste and texture. Key obstacles included:

• Ensuring a slow-melting formulation for better handling.
• Achieving consistent chocolate coating with embedded sauce ribbons.
• Developing a robust packing process for cold chain logistics.

Advanced R&D: The Backbone of Bon Bon Production

Magnum Bon Bon’s development was driven by Unilever’s Advanced Prototype Engineering Centre and Advanced Manufacturing Centre in the UK. These state-of-the-art facilities leveraged cutting-edge technology to accelerate innovation.

• 3D Printing & CAD/CAM: Engineers designed and tested prototypes to determine the optimal Bon Bon size for packing and transportation.
• Pilot-Scale Testing: Small batch runs tested efficiency, reduced waste, and optimized production.
• Chocolate Enrobing Process: A custom-designed “chocolate waterfall” covers thousands of ice cream bites per minute with minimal waste, ensuring a consistent product.

Unilever’s process line for Magnum Bon Bons can produce over 200 million pieces annually. Sophisticated systems ensure precise dosing of ice cream, chocolate, and inclusions, maintaining the product’s quality and taste across large volumes.

Magnum Bon Bon’s launch showcases Unilever’s ability to combine robotics, AI, and advanced manufacturing to bring innovative products to market quickly. The success of this project underscores the company’s future-ready capabilities in ice cream production and its responsiveness to evolving consumer preferences.

“It has been a fantastic team achievement to take this project from idea through to full industrialization,” said Paul Sherwood, Lead R&D Process Engineer.

Magnum Bon Bons are now available in stores, offering a premium, bite-sized indulgence perfect for today’s snack-savvy consumers.

The post Magnum Bon Bons: The Science Behind Unilever’s Bite-Sized Ice Cream Innovation appeared first on Agro & Food Processing.

The report highlights several key factors driving market growth, including rising disposable incomes, a demand surge for premium and artisanal products, and consumer interest in convenient, indulgent treats. Health-focused offerings like low-calorie, dairy-free, and plant-based options are expanding the market’s appeal, particularly among health-conscious consumers. Additionally, warmer regions show heightened seasonal demand, while urbanization and a youthful demographic continue to contribute to increased consumption.

The ice cream market is witnessing trends toward plant-based alternatives, organic ingredients, and clean labels, with a noticeable shift towards sustainable packaging practices. Limited-edition flavors and brand collaborations are attracting younger consumers, adding novelty to the market. Brands are also exploring functional ingredients like probiotics and protein, enhancing appeal to wellness-focused consumers. Sustainability is becoming a priority, with brands aligning with eco-friendly practices to attract environmentally conscious shoppers.

Opportunities abound in niche markets, particularly for vegan, lactose-free, and low-calorie options. Emerging economies with growing middle classes present significant potential for premium offerings, while direct-to-consumer sales through e-commerce and delivery platforms offer added convenience for consumers.

Regionally, North America and Europe lead in demand for premium flavors and innovations, while Asia-Pacific sees rapid market expansion due to urbanization and rising disposable incomes. Latin America and the Middle East also exhibit promising growth, driven by middle-class expansion and a growing preference for Western desserts.

The post Global Ice Cream Market Poised for Strong Growth, Expected to Reach USD 119.93 Billion by 2030 appeared first on Agro & Food Processing.

The launch of Brie My Guest also marks the return of Baskin-Robbins’ popular Turkey Cake, an ice cream cake designed to look like a roasted turkey, complete with sugar cone “drumsticks” and a caramel praline glaze.

“This month’s flavour is a twist on the classic cheeseboard that will surprise guests and add a touch of sophistication to holiday gatherings,” said Jerid Grandinetti, Baskin-Robbins’ Vice President of Marketing & Culinary.

The new flavour has already sparked reactions, with TODAY show hosts offering their verdict. While Savannah Guthrie and Hoda Kotb gave it a thumbs up, describing it as “like eating cheesecake,” not everyone was as enthusiastic. “It’s too much cheese,” noted Craig Melvin, and Carson Daly commented, “The burrata part of it’s OK, but when the brie kicks in…”

Brie My Guest is available for a limited time beginning November 1, both in stores and on the Baskin-Robbins app. This is the latest in Baskin-Robbins’ holiday line-up, following September’s Spooktacular Polar Pizza and Twix Caramel Crunch flavour release for Halloween.

The post Baskin-Robbins Debuts Cheeseboard-Inspired “Brie My Guest” Ice Cream Flavour for Thanksgiving appeared first on Agro & Food Processing.

The committee concluded that the ice cream segment, contributing around 3% to HUL’s turnover, is a high-growth category that requires substantial investment to reach its full potential. “The separation is in line with the committee’s recommendation after a comprehensive review,” HUL stated in a stock exchange filing.

The company highlighted that the ice cream business operates under a different model from HUL’s core operations, with specific cold chain infrastructure and distinct channels, limiting synergies with its other segments. “This restructuring will allow HUL to sharpen its focus on core categories like beauty, food, health, and well-being,” the company said.

The decision is part of a larger strategy by HUL’s parent company, Unilever, which announced earlier this year the separation of its global ice cream business. HUL will develop local capabilities to maintain the business as Unilever holds the trademarks and know-how for the ice cream division.

Ritesh Tiwari, HUL’s CFO, stated during a press conference that two options for the separation are under consideration: selling the business or demerging and listing it. “We expect to finalize the mode of separation by December,” he added, emphasizing that the primary goal is to maximize shareholder value while minimizing disruption.

This follows Unilever’s global restructuring initiatives, including the launch of a productivity program aimed at driving growth and improving efficiency. The ice cream business, known for brands like Kwality Wall’s, will now have greater flexibility to focus on its growth trajectory.

The board aims to determine the separation path by year-end.

The post Hindustan Unilever to Spin Off Ice Cream Business after Board Approval appeared first on Agro & Food Processing.

This decision follows an application from VRB Consumer Products, which argued that its “Vanilla Mix” should be classified as a milk product under Heading 0404, attracting a lower GST rate. However, the AAR found that the mix contains 61.2% sugar and only 34% milk solids, prompting the authority to rule that the product is sugar-based with milk solids added, not the other way around.

Harpreet Singh, Partner of Indirect Tax at Deloitte-India, explained that the ruling rejected the classification of the mix as a milk product due to its composition, which includes several other ingredients. The ruling adds to the growing list of GST disputes involving milk-based products, with flavoured milk taxed at 12% and lassi exempt.

The post Ice Cream Lovers Beware: GST Body Drops a Sugar Bomb on Softy Mix appeared first on Agro & Food Processing.

The new Magnum Bon Bons come in 12-piece tubs, designed for easy sharing and snacking. They are available in three of Magnum’s most successful flavours: white chocolate & cookies, gold caramel billionaire, and salted caramel & lmond. The product is being rolled out across multiple markets, including Portugal, Germany, Switzerland, Australia, France, the UK, Ireland, Spain, and more European regions in the coming months.

Rising Demand for Bite-Sized Indulgence

The launch of Magnum Bon Bons reflects the increasing consumer preference for flexible, bite-sized treats, particularly among Gen Z. Research shows that 9 out of 10 Gen Z consumers snack at least once a day, with many favouring smaller portions of their favourite indulgent foods. In the UK, one-third of ice cream consumers have expressed interest in trying bite-sized portions, which is why Unilever is keen to position itself in this evolving market.

Rosie Festus, Global Brand Manager for Magnum, emphasized the growing popularity of micro-bites in the food and beverage sector, stating, “We’re building the micro-bite ice cream category by tapping into how changes in consumer behaviour have created new consumption occasions.” With snacking increasing significantly during the pandemic and continuing to gain momentum, particularly among younger demographics, Unilever’s innovation in smaller portion sizes meets this shift in consumer habits.

Boosting Sales through Micro-Formats

Unilever’s push into bite-sized ice creams comes with significant growth potential. Studies from Kantar and Nielsen reveal that the bite-sized format is driving ice cream sales and premiumizing the category. Consumers who purchase these smaller treats alongside traditional formats spend an average of 76% more on ice cream, underscoring the financial upside of offering both options.

In addition to Magnum Bon Bons, Unilever has expanded its snacking portfolio through other popular brands. Ben & Jerry’s introduced a new salted caramel brownie flavour to its bite-sized ‘Peaces’ range, while Yasso, a US-based Greek yoghurt brand, continues to see success with its 35-calorie ‘Poppables’. Yasso’s bite-sized offerings now account for roughly a quarter of the brand’s growth.

Changing the Ice Cream Game

As snacking habits evolve, consumers are moving from traditional evening treats to enjoying bite-sized portions throughout the day. Unilever aims to make ice cream a year-round snack option by offering smaller, shareable formats both in stores and through on-demand grocery services. This strategy not only meets the demand for convenience but also helps deseasonalize ice cream, making it a go-to treat any time of the day, all year.

With the growing popularity of bite-sized ice creams, Unilever is well-positioned to lead the category, offering indulgence in convenient, shareable formats that cater to the modern snacking lifestyle.

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