What lies under Neath
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A monkey called Crucial Kevin keeps a watchful eye on Gavin Neath, chairman of Unilever UK, who took over from Cadbury's John Sunderland as president of the Food and Drink Federation (FDF) in January this year.
Kevin is named after a former colleague of Neath's from his days at Unilever Bestfoods. Kevin the cuddly toy monkey, however, sports a T-shirt with PG Tips splashed across its front. And his role in life? Neath jokes that Kevin's job is to remind him that the lawyers are always present. He may also be symbolic of the monkey on Neath's back.
Neath is a man who, while holding wide ranging views, is passionate about the social responsibility incumbent upon big business. He is comfortable at the helm of the UK arm of a corporate giant, while espousing the personal view that future generations will not look favourably upon an affluent West that fails to open up its markets more fairly to developing nations seeking to export their agricultural products. He is also not afraid to display a sense of humour not often associated with captains of industry, and chuckles warmly at regular intervals during our meeting.
Speaking from his open-plan office at Walton-on-Thames, Neath has no doubts about the main issue he will face during his presidency of the FDF, which now represents a sector valued at around £69bn. It is the debate raging about food and health. "There is a legitimate question of public health there," he says. "And the food industry has a responsibility to face up to it and engage with government and other stakeholders."
While he doubts that the industry will ever be able to assuage everyone -- particularly those from the many single issue pressure groups that have emerged to target food over recent years -- he firmly believes manufacturers have responded well to public concern in some areas: such as salt content in processed foods, for example, where scientific evidence has clearly justified a reduction.
However, he believes that sugar and fat contents present far more complex issues involving individual choice and lifestyle.
Neath points to the decline or 'flat-lining' in consumption of fats and sugars over the past decades, despite rising obesity levels. But he isn't complacent either. And he recognises the particular vulnerability to obesity of certain sections of society. "There is a social inclusion element in this," he affirms. "I think you will find that most of the large food companies in the UK would express that view."
Threats and opportunities
Public attention on obesity represents both an opportunity as well as a threat for the industry, admits Neath, pointing to the huge R&D investment by most major UK firms in "a whole raft of projects all in the area of health". "There are opportunities there for people who can develop the right products at the right price," he says.
"The threat, however, is that if the food industry were to do nothing then there would over time be a progressive undermining of confidence in what have come to be called processed foods or convenience foods," he adds. Neath firmly believes the industry has to dispel perceptions among some sections of the population that processed food is bad for you. And it can help do this by "making ourselves less vulnerable to criticism over things like salt".
While recognising the tremendous pressure for change the industry is currently experiencing, he modestly remarks that it is a conceit of every generation of managers -- his own included -- to believe the change they are managing is greater than their predecessors. "It is not," he states categorically.
Neath, who was born in east Africa, gained a BA at Manchester University followed by a MSc at Warwick in management science and operations research. In 1977 he joined Unilever with whom he has worked in various roles "man and boy" ever since -- rising up through the ranks of marketing and sales. He was appointed UK chairman in July 2004.
He sees his role as a leader "to maintain a sense of confidence and purpose in the organisation and keep the energy levels high". He is acutely aware of the potential pitfalls facing many conglomerates of falling into a state of inertia.
"It is very, very easy in large organisations for people to just kind of rumble along in second gear." But, he claims, his job is also to bring stability: "Organisations that have real stability tend to do very well."
Providing a stable climate in which business can prosper is also one of the main roles of government, he asserts. A stable macro-economic environment in which companies are left alone to get on with what they need to do is what most businesses want, he claims.
As the boss of Unilever UK, which is currently going through some painful changes in a move designed to improve its profitability under the constant glare of attention from the city and financial press, he can be under no illusions about the difficulties the industry faces. In many ways Unilever is a bellwether for the rest of food manufacture.
So, does he believe there is a future for food manufacture in the UK as companies strive to compete with cheaper overseas supplies?
His answer demonstrates a certain ambivalence. Big organisations, he has no doubt, will 'offshore' production to where things can be done either more cheaply or better.
But he adds: "Our job as leaders of the UK industry is to ensure that the kinds of products we are developing are of a kind which deliver real added-value. And part of the way of achieving that added-value is making it difficult for other people to copy."
Whether it is his character or dictated by being the boss of a big blue chip, Neath exudes an irrepressible optimism: "Things are in quite good health at the moment."FM
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