Unilever is preparing to sell several food brands valued at over €1 billion as part of a strategic move to streamline its operations, according to CEO Hein Schumacher. This decision follows a report indicating plans to offload assets in Britain and Europe, as the company aims to concentrate on core products.
Schumacher expressed a desire to refine Unilever’s assortment, described as a “rather eclectic portfolio of food brands,” focusing more on condiments, products, and sauces tailored for restaurants and professional kitchens. Although specific brands earmarked for sale were not disclosed, the decision is part of a broader strategy to tighten the focus on key product lines.
Unilever’s current portfolio includes well-known names such as Colman’s mustard, Knorr stock cubes, Bovril beef extract, and Marmite yeast spread, along with popular ice cream brands like Ben & Jerry’s, Magnum, and Cornetto. However, the CEO clarified that not all brands would be divested. “We are not conducting a fire sale,” he stated, suggesting that some brands, even if not perfectly aligned strategically, would remain.
Earlier in the year, Unilever attempted to divest its ice cream division valued at approximately £15 billion, a plan that was eventually halted due to a lack of buyers. In November, Unilever also put its plant-based meat alternative brand, the Vegetarian Butcher, up for sale, highlighting its ongoing efforts to streamline its brand offerings.
The move comes amidst a challenging environment for global food manufacturers, who are navigating changing consumer preferences and economic pressures. While divesting non-core brands could strengthen focus, it also represents a significant shift in Unilever’s traditional business strategy.
Unilever’s decision to sell parts of its food brand portfolio marks a significant shift towards a more streamlined business model, favouring core offerings in the food service sector. The outcome of this strategic move remains to be seen, as the company balances maintaining a diverse brand presence with the need for focus and efficiency.
