Magnum receives heatwave sales boost in Europe but sees volume growth melt away in US thanks to fat jabs

The heatwaves across Europe have boosted Magnum sales, but volume growth has melted away in the US due to the rise of weight loss injections. 

The company, which owns the Cornetto and Wall’s brands and was spun out of Unilever last year, saw sales volumes rise 5 per cent in Europe, which has been experiencing a slew of heatwaves this spring and summer.

The business said this growth was ‘supported by favourable weather’, with France and the UK doing especially well.

Overall global sales rose 4.9 per cent over the second quarter, with revenues topping £2.5billion. Chief executive Peter Ter Kulve said: ‘Our key summer selling season got off to a strong start.’

But in the Americas region, sales volumes grew by just 0.1 per cent in the second quarter – compared to 1.8 per cent in the same period last year, with the group relying on higher prices.

Bosses have previously tried to downplay the impact of weight loss drugs such as Ozempic, which curb consumers’ desire to snack. 

Magnum says consumers are no longer buying lots of tubs of ice-cream and insteaf shifting towards being more selective and purchasing premium ice-cream on sticks as an indulgence.

Magnum has expanded its range of ‘better for you’ options, including smaller versions of popular brands such as Magnum Bonbons and Ben & Jerry’s Peaces.

Ter Kulve said that the ice cream market ‘goes from strength to strength’, and is now ‘driven’ by a shift towards products that consumers see as having ‘more calorie control’.

It said profits fell 14 per cent to £430million from £502million over the first six months of the year.

The group said that it was ‘mindful of continued uncertainty in the global environment, particularly in the Middle East and the associated knock on effects to inputs costs.’ But it said its ‘direct regional exposure remains limited, and we are taking mitigating actions.’

It reiterated guidance for annual sales growth between 3 and 5 per cent.

The results come amid a row between Magnum, former owner Unilever and the co-founders of Ben & Jerry’s.

Ben Cohen, who co-founded in 1978 alongside Jerry Greenfield, has criticised its owners for suppressing the brand’s attempts to make political statements.

But Magnum has said it is not considering selling the brand.

The brand was bought for £251million in 2000, with the agreement that it would be managed by an independent board.

Three members of this board had to leave their roles last year, after the ice cream company introduced a new set of governance practices.

Cohen had called this a ‘blatant power grab designed to strip the board of legal authority and independence’.

The brand’s philanthropic arm, the Ben & Jerry’s Foundation, said earlier this month that it would be forced to shut at the end of the year after its owners cut funding – citing governance issues.

But on Thursday, Ter Kulve said the company still continued to fund ‘all the important activism goals’, which Ben & Jerry’s is well known for, but said ‘we needed a governance step up.’ 

Cohen has accused Unilever and Magnum of trying to block the ice cream company from expressing its support for Gaza and criticism of Israel amid the war in the Middle East.