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Consumer goods group Unilever puts tea business to the test

The consumer goods company Unilever poses tea shop with brands like Lipton and Pukka in the shop window. “We will review all options for the business,” said chief financial officer Graeme Pitkethly on Thursday. Is still Unilever According to its own statements, the world’s largest tea provider – this could possibly be over in the future.

Because customers grab Unilever according to increased herbal teas to that revenues with traditional black tea went back. But black tea is the main part of the Unilever tea business, the annual one revenues of 3 billion euros and is represented in 60 countries.

The group has had a difficult year with sluggish business in its key markets India and China and increased competitive pressure in North America and India behind. CEO Alan Jopewho took the helm a year ago Unilever had taken over, is under pressure.

In the summer he announced that the company wanted to focus primarily on sustainability instead of just growth. The broad brand portfolio of Unilever he wants to streamline and focus on fast growing brands like Dove, Knorr and Persil focus, which make up almost two thirds of Group sales. Brands such as Magnum ice cream, marmite and pot noodles are not among the drivers.

Still has Unilever but nothing started, even if competitors like Nestle and the Anheuser-Bursch brewery group InBev have already sold grocery stores for billions of dollars to refocus. That Unilever making some progress on his sales strategy is encouraging, said Liberium analyst Anubhav Malhotra looking at that tea shop, In November, the company had rejected a media report, according to which it had sold its tea shop reviewed.

Last year sat Unilever 52 billion euros, adjusted by 2.9 percent. However, the group thus remained behind its own goals. Operating profit fell by a good 31 percent to EUR 8.7 billion. Bearing in the current year Jope as in 2019, sales growth in the lower half of the multi-year target corridor of 3 to 5 percent.

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