Heppenheim in the ice rush: 100 million for the Magnum future!

Heppenheim in the ice rush: 100 million for the Magnum future!

A significant portion of the world-famous Magnum ice creams are produced every day at Langnese's production facility in Heppenheim. With a total area of ​​100,000 square meters, the factory is not only the largest in Europe, but also the third largest in the world. Over 600 people are employed there, while significant investments amounting to double-digit millions are planned in the coming years to further expand the location and optimize production. These measures come in the context of the spin-off of Unilever's ice cream business, which was officially completed on July 1, 2023.

The spin-off, which saw brands such as Langnese, Magnum and Ben & Jerry's transferred to the newly formed "The Magnum Ice Cream Company", is expected to be completed by the end of 2025. The move is part of a larger cost-cutting program initiated by Unilever to focus on 30 core brands that already account for 70% of the company's sales.

Growth forecasts and innovation strategy

The ice cream division's sales are estimated at around 8 billion euros in 2024, with a significant global market share of over 20% in retail. As a result of this spin-off, Unilever expects sales increases in the mid-single-digit percentage range and a moderate improvement in profit margins. However, the company will not have to operate without challenges: as part of the restructuring, 7,500 job cuts have been announced worldwide.

Heppenheim doesn't just offer the traditional Magnum ice cream flavors. New products, such as Magnum variants with pistachio ice cream and ice cream pralines in snack format, are also being developed to increase sales in the winter months. The company also relies on a sustainable energy supply and plans to save around 30% of its energy consumption.

Investments and environmental awareness

The daily milk supply comes from 6,000 cows, while a total of 7,800 bathtubs of orange juice are required for production. Further investments will flow into a new cold storage hall, which will be operated by a partner company. The high investments and the commitment to environmental friendliness demonstrate a long-term perspective, also for the employees. They have an average length of stay in the company of 22 years, and many trainees advance to management.

With an average age of 44, around 250 employees are over 50 years old. The personnel policy is paying off, especially since the company takes on 10 to 12 trainees every year and offers them attractive benefits.

After the group generated sales of 59.6 billion euros in 2023 and the ice cream division already generated 7.9 billion euros, the stock market reacted positively to the news of the spin-off, which led to a 5.3% increase in Unilever shares.

It remains to be seen whether the restructuring and the associated investments will ultimately bring about the desired success. However, it is clear that ice cream production in Heppenheim will play a central role in the newly positioned company in the future.

For more information about developments at Langnese and Unilever, see the articles from FAZ and daily news.