The news, which was originally revealed by Reuters, said that three independent sources had confirmed that it was looking to offload classic British brands, including mustard maker Coleman’s along with Bovril and Marmite.
Reports claim that chief executive Fernando Fernandez has been looking to strengthen sales and profits since taking over the role in February.
He is reportedly also pushing ahead with plans to move the group away from food towards beauty and personal care. Although its expected the giant will hold onto snack brand Pot Noodle.
The food and beauty giant saw the shock departure of its CEO Hein Schumacher recently, who was replaced by Fernandez. Spectators say his appointment is likely to be speeding up the disposal of several non-core brands.
“Unilever are clearly keen to focus their business on key product areas and critical brands,” Julian Wild, director of Wilkin Chapman Rollits told Food Manufacture.
Clive Black, vice chairman for Shore Capital agreed: “Unilever is in a constant mindset of portfolio optimisation, which means that as it perceives market dynamics - so upside versus downside characteristics of particular categories, in particular markets, which then translates into the prospects for particular proprietary brands in its stable - it will seek to buy and sell labels.
“In general the firm has been prioritising higher value and seemingly faster growing personal care names over food, noting the separation from ice cream, and so Marmite and one or two other heritage British brands may be in the exit lounge.”
The Unilever ice cream division is also being demerged from the main business which is expected to happen at the end of 2025.
The ice cream division has also been involved in some controversy with the Ben & Jerry’s founder quitting and Unilever declaring its chair no longer “meets criteria.”
Earlier this year, Unilever also agreed the sale of The Vegetarian Butcher for an undisclosed sum.
‘A sale would make sense’
“The strong speculation that Unilever are looking to further reduce its portfolio of food brands, should not really be a surprise,” Mark Field, CEO of CEO Prof Consulting Group Ltd added.
“Having sold of its Magnum ice cream business turning its focus to he iconic brands of Colemans, Marmite and Bovril is, in my view, a logical approach. These brands are a traditional part of the grocery aisle across UK retail and play a key part in the growing international aisle overseas, it’s estimated that combined the brands represent approximately £200 million.
“Although licensing is becoming increasingly popular and Marmite benefiting from some exciting co branded innovation, the market outlook is probably stable to slight growth as the category becomes more competitive. Each a highly successful businesses in their own right and a worthy addition to many food groups through an acquisition. The ability to grow sales and profit will be less compared to some of Unilever’s other business. Taking a good return on this portfolio, reducing complexity and freeing resource and capital for a more streamlined business makes sense.
“Raising the question who will buy these brands, we are seeing some exciting shift changes in the market as conglomerates restructure to deliver shareholder returns and rapidly growing food groups take advantage acquiring to accelerate growth and market access. Each business with long life stable products, leading brand recognition and well established market access should attract interesting if the rumoured sale-off is true.”
Food Manufacture did contact Unilever but it declined to comment.
