Unilever to spin off British brands into separate company

Source: Retail Digital

Date :30/04/2008 09:12:28

Unilever Plc is to spin off some of its major brands such as Marmite and Pot Noodle into a separate company.

The Anglo-Dutch multinational is transferring 14 European food brands from Britain, France and Germany into a unit being managed from Rotterdam, the Times newspaper reported citing a company spokesman

The British brands also include Bovril and the spicy salami Peperami.

Other products, such as Colman's mustard, PG Tips and Scottish Blend tea, will remain in the main Unilever fold, the newspaper said.

Management focus

Analysts at Citigroup predicted that the move could be a precursor to the eventual disposal of the brands. “Why else transfer a number of smaller and local brands to a separate company?” they said.

However, Unilever said that the scheme would provide specialist management focus for its “local jewels” and there were no plans to sell them.

Streamlining

Project Chrysalis comes as Unilever, home to Flora margarine undergoes a significant overhaul.

In the three years the consumer foods giant has sought to streamline its diverse portfolio, with the sale of minor brands such as Boursin cream cheese to concentrate on its core names.

A slate of businesses around the world have been sold or are awaiting disposal.

Its Brazilian margarine businesses was sold last June, the sale of the US herbs and spices division is being completed and the American laundry detergent unit is up for sale.

April 30, 2008