coned ice cream with blueberries and flowers
  • Comprehensive initiative to streamline operations over three years
  • Expected savings to offset dis-synergies from Ice Cream division separation
  • Technology investment to play key role in efficiency drive

London, England — Unilever said Tuesday it is speeding up its Growth Action Plan by separating its Ice Cream division and introducing a productivity program.

The reasoning as provided in the most recent press release is a real goodie:

Ice Cream has a very different operating model, and as a result the Board has decided that the separation of Ice Cream best serves the future growth of both Ice Cream and Unilever.

Unilever simultaneously declared the launch of an extensive productivity program, building upon the initial progress of its Growth Acceleration Program (GAP).

The initiative aims to drive growth through a leaner, more accountable organization. The programme is expected to yield significant cost savings, estimated at approximately €800 million over the next three years.

This move is strategically positioned to more than counterbalance the operational dis-synergies anticipated from the separation of its Ice Cream division.

The incremental net savings are planned to provide the necessary leeway for accelerated investments in brand development, research and development (R&D), and margin improvements over time.

A notable aspect of the programme is the focus on reducing complexity and redundancy. Unilever plans to leverage technology-led solutions, standardize processes, and establish operational centers of excellence to enhance efficiency.

This strategic approach indicates a shift towards a more streamlined and technologically advanced operational framework, reflecting a broader trend in the industry towards digital transformation.

In summary, Unilever’s productivity program is a forward-looking strategy aimed at reshaping its operational structure to foster accelerated growth and market competitiveness. Through significant cost savings and technology investment, the company is poised to navigate the challenges and capitalize on the opportunities of the evolving market landscape.

By Lisa Luckas

Lisa Luckas is a Sr. Business News Editor at Nobot.News.

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