Unilever just announced it is spinning off its ice cream division, which includes the colorful and controversial Ben and Jerry’s brand. This will enable Unilever to focus on what it does best while avoiding distractions.
This is a pivotal move.
“The future growth of Unilever and ice cream is best served by separating the business,” Unilever CEO Hein Schumacher told journalists. He pointed to ice cream’s “distinct characteristics,” such as season-dependent demand and a supply chain that must be able to support frozen goods.
Due to its unique needs, ice cream can be a distraction from Unilever’s differentiator.
Unilever is also quoted as saying, “Following separation, Unilever will become a simpler, more focused company.”
Simplification is sometimes the best innovation.
Companies are often so focused on acquisitions that divestitures get less attention.
But this is often where the real gold can be found.
Eliminate distractions, prune away anything that diverts energy, and double down on what you do best.
Innovate where you differentiate.
This is the essence of my next book, PIVOTAL.