Unilever explores sale of Dutch brands like Unox, Conimex, sources say
6:48 am Thursday, November 14th, 2024
By Amy-Jo Crowley and Richa Naidu
LONDON (Reuters) – Unilever is exploring the sale of some of its Dutch food brands, three sources with knowledge of the process said, as part of a turnaround strategy led by CEO Hein Schumacher to focus on its biggest “power” labels. Unilever has lined up ABN Amro to conduct a sale of some of the Dutch food brands, including Unox soups and Conimex seasonings, according to the sources, who spoke on the condition of anonymity because the talks were private. The brands have been deemed non-core to Unilever, the sources said, with one adding that the Dutch brands for sale have profits of about 40 million euros ($42.16 million). Unilever is also trying to sell smaller food brands in Britain and other countries in Europe, this source and a second source said. The company declined to comment. An ABN Amro spokesperson declined to comment. Unilever, home to about 400 brands worldwide, has over the past year been trying to recalibrate its operations to focus more on marketing its top 30 “power” brands and streamlining its business, particularly in Europe. In March, Unilever said it would spin off its ice cream unit, home to brands such as Magnum and Ben & Jerry’s. Its restructuring under Schumacher, who previously ran Dutch dairy firm FrieslandCampina, has been generally well-received by investors, including activist Nelson Peltz who took a seat on Unilever’s board in 2022. Former CEO Alan Jope, who departed Unilever soon after Peltz’s stake was revealed, was criticised for allowing the group’s portfolio to balloon, leaving management with too little time to grow strong performers like Knorr, Hellmann’s and Dove. Schumacher told Reuters in February that Peltz’s views were “very much in line” with Unilever’s growth strategy. This involves investing more in its top 30 brands that represent more than 70% of sales, supporting its innovation pipeline for the next few years and working towards a better operating discipline, he said. Some investors have called for Unilever to go one step further and spin out its food business, which owns brands including Marmite spreads and Knorr stock cubes. When asked in February if he would consider such a move, Schumacher said: “when you talk about bigger portfolio changes, obviously I’m looking at that, but the biggest opportunity for now is executing our growth action plan.”
($1 = 0.9489 euros)
(Reporting by Amy-Jo Crowley and Richa Naidu; Editing by Anousha Sakoui and Jane Merriman)
