Unilever Shares Edge Lower: Report Says Company Considering Food Business Spin-Off

Unilever (LON: ULVR) shares have slipped around 0.8% on Wednesday, following a report from Bloomberg on Tuesday that the company is exploring a potential separation of its food division as part of a broader effort to streamline its portfolio.

Citing people familiar with the matter, Bloomberg said the consumer goods group is in the early stages of evaluating options for its food assets, including a possible spin-off of the entire division or a partial separation that would retain key flagship brands while divesting others.

The report said the company is working with advisers to assess strategic alternatives, although no final decisions have been made.

Any potential transaction is unlikely to take place before 2027, and Unilever could ultimately choose to maintain its current structure, Bloomberg added.

The food business could be valued at tens of billions of dollars in any deal and may attract interest from prospective buyers.

The move would mark a significant step in Unilever’s ongoing transformation under chief executive Fernando Fernandez, who has been focused on reshaping the group towards higher-growth segments such as beauty, personal care and wellbeing.

Unilever’s food portfolio includes a range of well-known brands, from condiments to packaged foods, though the division has faced headwinds in recent years amid shifting consumer behaviour and increased competition from lower-cost alternatives.

Bloomberg noted that the review reflects wider pressures across the food sector, where demand has softened as consumers cut back on spending.

Last year, the company’s ice cream division was spun off as Magnum Ice Cream Co., with Unilever retaining nearly a 20% stake that it will sell down over the coming years.