Unilever’s power brands fuel growth ahead of strategic split

Unilever’s Q3 2025 results show resilient performance in its foods and ice cream divisions, with power brands driving volume-led growth despite currency headwinds and portfolio disposals.

The company posted underlying sales growth (USG) of 3.4% in foods and 3.7% in ice cream, signalling strong consumer demand and pricing agility across both categories.

The foods business, which includes Knorr, Hellmann’s, and Colman’s, delivered €3.1 billion in turnover for the quarter. Volume growth was a key contributor, supported by recipe-led innovation and sustainability messaging. Knorr expanded its reach in flavour solutions, while Hellmann’s continued to leverage its “Make Taste, Not Waste” platform to deepen consumer engagement. Despite the sale of The Vegetarian Butcher earlier this year, the foods unit maintained momentum through its core brands and emerging market recovery.

Meanwhile, ice cream — accounting for 16% of Q3 turnover — generated €2.3 billion in sales, with growth underpinned by premium offerings like Magnum and Ben & Jerry’s. Unilever confirmed that the demerger of its ice cream unit, to be renamed The Magnum Ice Cream Company, remains on track for Q4 2025. The spin-off will include listings in Amsterdam, New York, and London, although a brief delay was triggered by the US government shutdown affecting SEC registration approvals.

CEO Fernando Fernandez emphasised that Unilever’s Power Brands — now 78% of group turnover — delivered 4.4% USG, with 1.7% volume growth and 2.6% pricing. He noted that the company “continued to outperform in developed markets” and is “stepping up performance in emerging markets” with renewed growth in Indonesia and China.

For food industry stakeholders, Unilever’s Q3 results underscore the strategic importance of brand-led innovation, pricing discipline, and portfolio focus—especially as the group prepares to sharpen its core through the ice cream demerger.