Unilever’s Chief Executive, Hein Schumacher, has announced the company’s intention to sell several food brands worth over €1bn (£830.6m) as part of a strategy to refine its business focus.
In a recent interview with a Dutch financial publication, Schumacher expressed plans to streamline Unilever’s food division. The consumer goods giant is looking to shed what he describes as a ‘rather eclectic portfolio of food brands’ to concentrate resources on condiments, products, and sauces primarily aimed at restaurants and professional kitchens.
The specifics of which brands will be sold remain undisclosed, although a report from Reuters hinted at potential sales in both Britain and Europe. This move aligns with Unilever’s previous efforts to adjust its brand portfolio, including its recent decision to put its plant-based meat brand, the Vegetarian Butcher, up for sale. However, Schumacher clarified that not all non-core brands will be offloaded, stating, ‘We are not conducting a fire sale. There will always be brands that are not a perfect strategic fit, but that will remain part of Unilever.’
Unilever’s current food portfolio includes well-known names such as Colman’s mustard, Knorr stock cubes, Bovril, and Marmite, along with popular ice cream brands like Ben & Jerry’s, Magnum, and Cornetto. Earlier this year, Unilever attempted to sell its €15bn ice cream division but suspended the plan after encountering difficulties finding buyers.
Schumacher’s comments indicate a significant shift in Unilever’s strategic direction, aiming to optimise its operations and focus on core areas where it can achieve more significant market impact. The company has been under pressure to improve its operational efficiency and financial performance, leading to cost-cutting measures, including the laying off of over 7,500 employees.
Unilever’s proposed sales and strategic refocus reflect its ongoing efforts to adapt to market demands and streamline its operations. The impact of these changes remains to be seen, as the company continues to balance between shedding non-essential brands and strengthening its core operations.
