Unilever is preparing to challenge India’s centuries-old Diwali mithai tradition with an unconventional twist—ice cream. The world’s largest ice-cream maker, with brands such as Kwality Wall’s, Magnum, Cornetto, and Ben & Jerry’s, wants to position frozen desserts as a festive indulgence alongside laddoos, kaju katlis, and barfis.
The move comes as Unilever’s demerged ice cream division sharpens its focus on high-growth markets, such as India. Drawing on global campaigns that turned Ramadan, Christmas, Easter, and the Fourth of July into peak consumption periods for ice cream, the company now aims to create a similar cultural shift during Diwali.
“Ramadan was not an ice-cream moment 15 years ago. Now it is in all Muslim countries. Christmas is an ice-cream moment, Easter is an ice-cream moment, but Diwali in India is not—yet,” said Peter ter Kulve, CEO of Unilever’s Magnum Ice Cream Company, during an investor meet.
India’s $5-billion ice-cream market is dominated by Amul, while traditional sweets remain central to festive rituals—exchanged among families, offered to deities, and symbolizing prosperity. Ice cream, by contrast, is still viewed as a summer indulgence or a westernized treat.
To change this perception, Unilever is exploring strategies such as special Diwali-themed products, promotional tie-ups with retailers, and dedicated festive advertising campaigns. The model mirrors efforts by Mondelez and Ferrero, which successfully expanded chocolate consumption during Indian festivals through aggressive retail placements and marketing.
“We are asking ourselves—how can we unlock Diwali in India for ice cream? Do we need special products? Do we do promotions with retailers? Do we run a festival of lights ad campaign? You build that over time, and you create an ice-cream moment,” Kulve explained.
While soaps, shampoos, and detergents make up the bulk of Hindustan Unilever’s revenues, India already contributes more than 14% of Unilever’s global sales. The company’s ice-cream division is set to be spun off into a separate listed entity by FY26, a move expected to accelerate innovation and competitiveness in local markets.
If successful, Unilever’s plan could redefine Diwali indulgence—turning the freezer into as much of a festive stop as the sweet shop.