Unilever stirs the pot with review of global tea business

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Unilever will conduct a review of its global tea business, including the PG Tips...

) UNc.AS will conduct a review of its global tea business, including the PG Tips and Lipton brands, in an apparent strategy rethink by Chief Executive Alan Jope in the face of slowing group sales growth.

Jope has previously said the company was invested in turning around the tea business over the longer term, but the change of plan could soothe concerns of investors who have lamented a lack of urgency in transforming Unilever’s struggling food and refreshment business. Pitkethly said tea is a good performer in emerging markets and in the premium category but all regions and all parts of the business would be considered for review. Options include a partial or full sale of the business, he said without giving a timeframe.

Unilever has been suffering elsewhere, too, with stuttering growth in India and China, two of its biggest emerging markets, while intense competition in North America and Europe has also hampered efforts to hit full-year growth targets.The food and refreshment business - which makes Lipton teas and Hellmann’s mayonnaise among others and contributes 40% to group sales - has been hit particularly hard in North America and Europe as consumers reach for healthier options.

 

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Only if Lipton's CEO tastes the ultra-horriable black tea they are selling in Saudi Arabia as 'Premium Black Tea', he will understand why their sales is struggling.

To corporations, coronavirus is just an opportunity to sell stuff for people who are to scared to go outside their home.

That’s what he’s so scared of

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