Why Is Unilever In News? New Indian CFO, Ben & Jerry’s CEO Rift, and More

Unilever is in the spotlight for reasons that go beyond soaps and ice cream. Three developments are making waves: the appointment of a new Indian-origin CFO, the resignation of Ben & Jerry’s co-founder amid disputes over Gaza-related activism, and a major restructuring that will spin off its entire ice cream division. Add to that Unilever’s latest earnings report, and you get a story of change, tension, and strategy at a global scale. 

Unilever share price has fallen 0.86%  this week after these developments, according to Google Finance data. Let us break down exactly why Unilever is trending and what it means for investors.

Who Is Unilever’s New CFO and Why Does It Matter?

Unilever confirmed Srinivas Phatak as its permanent Chief Financial Officer (CFO) earlier this month. A 25-year veteran of the company, Phatak had been serving as interim CFO since February.

• Background: He started his career in Unilever India and has held senior finance roles across markets.
• Pay Package: His fixed salary is around €1.175 million, with performance-linked bonuses and share awards.
• Context: He takes over after a leadership shuffle that saw the former CFO become CEO, creating a vacuum.

Phatak’s appointment is significant because he will be steering the financial side of Unilever’s boldest move in years, demerging its ice cream business. Investors will keep an eye on this leadership change for sure.

Why Did Ben & Jerry’s Co-Founder Jerry Greenfield Resign?

The more dramatic headline, however, came from Unilever’s ice cream aisle. Jerry Greenfield, who co-founded the iconic brand Ben & Jerry’s with Ben Cohen in 1978, accused its parent of silencing the brand’s activism on Gaza and Palestine, saying Unilever had violated the independence promised in its 2000 acquisition.

• Background: When Unilever bought Ben & Jerry’s, it allowed the brand to retain an independent board that could safeguard its social mission.
• Flashpoint: Ben & Jerry’s board wanted to take a stronger stance on the humanitarian crisis in Gaza, condemning Israel’s military actions on civilians, and calling for corporate accountability. Unilever reportedly blocked these statements, arguing they were politically sensitive and could harm the parent company’s global operations.
• Greenfield’s stand: He claimed this amounted to gagging the brand and betraying the merger agreement. In his resignation note, he said Unilever had “silenced the very voice that makes Ben & Jerry’s what it is.”

This is not the first clash. In 2021, Ben & Jerry’s attempted to stop sales in Israeli-occupied territories, sparking lawsuits and political backlash. The current rift shows how unresolved that conflict remains, and why Gaza became the breaking point. Greenfield’s departure highlights a broader tension: can activist brands retain authenticity under the umbrella of a global FMCG giant accountable to shareholders? For Unilever, the answer matters financially as well. Ben & Jerry’s thrives on its social identity, and any erosion of trust could weaken its premium positioning.

What’s Happening With Unilever’s Ice Cream Spin-Off?

Unilever is spinning off its €8-billion-plus ice cream unit, which includes Ben & Jerry’s, Wall’s, Magnum, and Cornetto. The new entity will be called The Magnum Ice Cream Company, operating as a stand-alone business by 2026.

Why the move?

• Simplification: Ice cream has very different supply chains and margins compared to personal care or home care, making it harder to manage within Unilever’s current structure.
• Focus: By separating, Unilever aims to sharpen its portfolio around faster-growing, higher-margin categories like beauty and health.
• Financials: The spin-off comes with upfront costs, restructuring, legal, and IT separation expenses. But Unilever argues that it will unlock long-term efficiency.

So far, the spin-off is a double-edged sword for the FMCG company. On one hand, it could allow brands like Magnum to scale independently. On the other, the dispute around Ben & Jerry’s activism adds uncertainty over governance and mission control.

How Did Unilever Perform in Its Latest Earnings?

Unilever’s H1 2025 earnings give important context to these changes.

Despite headwinds, Unilever reaffirmed its full-year guidance:

• Sales Growth: 3–5% underlying growth for 2025.
• Margins: Modest improvement in operating margins by year-end.
• Cash Flow: Around 100% conversion expected for the year.
• Second Half Outlook: Stronger growth expected in Q3 and Q4, driven by emerging markets like China and Indonesia.

How Do These Pieces Fit Together in the Unilever Story?

Unilever’s story right now is a mix of numbers and narratives:

• Finance: With Phatak as CFO, the company is focused on containing costs, managing currency volatility, and ensuring the spin-off is executed smoothly.
• Strategy: Spinning off ice cream allows management to focus on higher-growth businesses, even if it means near-term restructuring costs.
• Values: Ben & Jerry’s premium positioning relies on activist branding. If consumer trust erodes, its pricing power could weaken. How Unilever navigates through this crisis will be important.

Unilever is trending because it stands at a crossroads. Its CFO transition brings financial stability, its earnings show resilience amid headwinds, and its restructuring aims to create sharper focus. Yet, the Ben & Jerry’s controversy shows clearly that business is not just only about margins. The next quarters will test whether Unilever can hit its growth and margin targets while spinning off ice cream and addressing brand independence concerns.

Disclaimer:

The content is meant for education and general information purposes only. Investments in the securities market are subject to market risks, read all the related documents carefully before investing. Past performance is not indicative of future returns. The securities quoted are exemplary and are not a recommendation. This in no way is to be construed as financial advice or a recommendation to invest in any specific stock or financial instrument. The figures mentioned in this article are indicative and for general informational purposes only. Readers are encouraged to verify the exact numbers and financial data from official sources such as company filings, earnings reports, and financial news platforms. The Company strongly encourages its users/viewers to conduct their own research, and consult with a registered financial advisor before making any investment decisions. All disputes in relation to the content would not have access to an exchange investor redressal forum or arbitration mechanism. Registered office address: Office No. 507, 5th Floor, Pragya II, Block 15-C1, Zone-1, Road No. 11, Processing Area, GIFT SEZ, GIFT City, Gandhinagar – 382355. IFSCA Broker-Dealer Registration No. IFSC/BD/2023-24/0016, IFSCA DP Reg No: IFSC/DP/2023-24/010.