#NEWS: Unilever set to Divest its Spread Businesses

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Unilever is the world’s largest producer and distributor of Fast Moving Consumer goods with over 400 brands distributed in 190 countries.

Unilever has decided to sell of its Spread business globally which includes brands such as Becel, Flora, Country Crock, ‘I Can’t Believe It’s Not Butter’, Rama, ProActiv and Blue Band which is most common in Nigeria. Blue Band Magarine would be sold to Sigma Bidco an investment company with key interest in Consumer goods, operating out of Netherlands. The reason for the divestment is the poor performance of the Spreads segment globally and the desire by the company to boost shareholders’ return as the transaction would enable the company focus on other well-performing categories. Nigerians are fast becoming more health conscious hence the reduction in the demand for Blue Band margarine.

Unilever has decided to focus on more Organic Food Businesses with its recent acquisition of Sir Kensington’s, a pioneer producer of natural non-GMO condiments and Brazilian natural and organic food business Mãe Terra. These acquisitions indicate that the company is looking for high-growth products that can help diversify its offerings and boost growth. In fact, the natural food market could provide a bigger growth opportunity to the company, as the global organic food market is expected to grow at a compound annual growth rate of over 16% through 2020, much faster than the global packaged food market, which is expected to grow at 4.5%.

 

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