Unilever Considering Sale of Dutch Food Brands

By Amy-Jo Crowley and Richa Naidu

LONDON (Reuters) – Unilever (LON:ULVR) is exploring the sale of some of its Dutch food brands as part of a turnaround strategy led by CEO Hein Schumacher to focus on its biggest "power" labels.

Sale Details

Unilever has lined up ABN Amro to conduct the sale of brands including Unox soups and Conimex seasonings. These brands have been deemed non-core to Unilever, with estimated profits of about 40 million euros ($42.16 million). The company is also looking to sell smaller food brands in Britain and throughout Europe.

Restructuring Strategy

Over the past year, Unilever has been trying to recalibrate its operations to focus more on marketing its top 30 "power" brands. This effort includes a plan to spin off its ice cream unit, which contains brands like Magnum and Ben & Jerry's. Schumacher, who previously ran FrieslandCampina, has received positive responses from investors about this strategy.

Former CEO Alan Jope faced criticism for allowing the portfolio to expand excessively, hindering the growth of strong performers such as Knorr, Hellmann's, and Dove. Schumacher has noted that activist Nelson Peltz's views align with Unilever's growth strategy, which focuses on investing in top brands representing over 70% of sales, supporting innovation, and improving operational discipline.

Future Outlook

Some investors have suggested further changes, such as spinning off the food business, which includes brands like Marmite and Knorr. Schumacher indicated that while he is considering larger portfolio adjustments, the primary focus remains on implementing the growth action plan.