Unilever to Sell Only ‘Minority’ of Brands

Unilever Co-Chairman Antony Burgmans said he expects to sell only a “minority” of brands being eliminated by the largest maker of food and consumer goods as it focuses on its 400 leading product lines. The maker of Lipton tea and Dove soaps has been approached by banks and buyers interested in some of the 1,200 brands being scrapped, though most will be rebranded under better-known names or discontinued, Burgmans said. “We need to get the cash value out,” Burgmans said. “But we don’t want this to cost us in terms of operating margins or market share.” Unilever is seeking to squeeze the value out of every brand and ensure growth isn’t wiped out by cost-cutting efforts, he said. The Dutch-British company is trying to close the gap with rivals such as Nestle, whose first-half net income rose 35% while Unilever’s fell 4.2%. Burgmans declined to name brands he plans to eliminate or sell except for the Elizabeth Arden line of perfumes and cosmetics. Beyond Lipton, Dove and the Magnum line of ice creams, the brands to keep include Ben & Jerry’s ice cream, SlimFast diet products, Amora Maille condiments as well as the Knorr soups and Hellmann’s mayonnaise brands. The goal is for sales to show annual growth of 5% by 2004. That includes 6% growth for the top brands and allows for a loss of 1% from the elimination of other product lines.

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