The Magnum Ice Cream Company invests in UK as part of supply-chain changes

UL -1.32%

The Magnum Ice Cream Company, Unilever's soon-to-be-listed ice-cream business, plans to up capacity and boost efficiency at a factory in the UK.

The facility in Gloucester in south-west England supplies customers in the UK and in continental Europe.

As part of the £50m ($65.6m) project, The Magnum Ice Cream Company (TMICC) will install two new production lines, replace an existing line and rebuild the site's mix plant.

Jamie Farrell, the head of TMICC's operations in the UK and Ireland, said: “As we prepare to launch the Magnum Ice Cream Company as a standalone business, this investment reflects our ambition to grow, innovate and continue delighting consumers in the UK and beyond through our much-loved brands.”

The factory, which employs 476 staff, manufactures products sold under brands including Magnum and Viennetta. Around 80% of the site's production is for the UK.

The investment, part of a "global supply chain transformation programme" set out by TMICC, will increase the capacity of the Gloucester site by 25%. The company is aiming to boost output at the facility by 50% by 2027 compared to production in 2023.

A spokesperson for TMICC said there would be "no direct impact on jobs", adding: "The site employs 476 people directly and the investment helps to secure its long-term future."

The investment comes as Unilever prepares to list TMICC in New York, London and Amsterdam next month.

TMICC, which has 35 factories, is looking for up to €380m in "gross savings" from its supply-chain programme in "the medium term", according to a presentation issued earlier this month.

The company wants to make its procurement more efficient and spark a "step change" in the productivity of its manufacturing.

TMICC is also targeting €70-100m in gross savings from moves to cut overheads. The group said the cost of being a standalone company is lower than operating as a division within Unilever.

The Solero maker is also aiming for €30-50m in gross savings from "tech-enabled productivity".

In total, the gross savings amount to a maximum of €530m. TMICC said it had secured around €150m during 2024 and the first half of 2025.

"The Magnum Ice Cream Company invests in UK as part of supply-chain changes" was originally created and published by Just Food, a GlobalData owned brand.

The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.