Unilever is posed to sell two food brands next year as it continues to realign itself around its 30 big ‘power brands’.
The consumer goods giant said it had received a binding offer from Zwanenberg Food Group to buy its Dutch Unox and Belgian Zwan brand. Both have been part of Unilever for almost 100 years.
“Unox is a beloved and iconic brand in the Netherlands and the decision to part with it has not been easy,” said Heiko Schipper, president of Unilever Foods.
“Zwan is a cherished brand in Belgium, associated with comfort and nostalgia and with quick and easy meals, making the brand a beloved part of everyday Belgium life.”
Unox and Zwan’s meat and soup products require a distinct supply chain and sourcing model making them less scalable within the business, Unilever said.
Unilever is looking to sharpen its foods portfolio for long-term growth and scalability, focusing on “fewer and bigger brands in categories such as cooking aids, mini meals and condiments,” it added.
New CEO Hein Schumacher said last month Unilever will “prune” its vast portfolio of over 400 brands to focus on the 30 biggest that make up around 70% of turnover. This will mean selling off food brands worth €1bn in annual sales. The food division brought in €13.2bn last year.
Not that every small brand will therefore face the axe. “We are not conducting a fire sale. There will always be brands that are not a perfect strategic fit, but that will remain part of Unilever,” Schumacher told Dutch newspaper Het Financieele Dagblad this month.
In November, it emerged Unilever had hired advisors to sell The Vegetarian Butcher just six years after buying the business for an undisclosed sum.
But plans to sell its €15bn ice cream division to private equity have reportedly been shelved with the division’s large size and complicated supply chain among factors that deterred potential suitors, according to the Financial Times.
Unoz and Zwan’s sale comes the same week as the sale of Asian dish specialist Conimex to Finnish food company Paulig.
Sjoerd van der Laan, CEO of Zwanenberg Food Group, said: “The Unox and Zwan brands are a wonderful addition to our range. We are a broad food company with strong brands.
“After the acquisition of the Unilever factory in Oss in 2018, the acquisition of the Unox and Zwan brands is a great addition that fits in perfectly with our ambitions.”
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