| Unilever PLC (GB00B10RZP78) | |||
44,88 GBXStand (close): 03.07.25 |
 |
||
Nachrichten |
||
| Datum / Uhrzeit | Titel | Bewertung |
| 28.06.25 16:39:23 | Unilever (UL) Seeks to Divest Graze Amid Strategic Shift to Personal Care |  |
| Unilever PLC (NYSE:UL) is one of the 11 best European stocks to invest in. On June 18, it was reported that the company was exploring the sale of its healthy snack brand, Graze. The proposed sale is part of a strategic shift away from food products and towards personal care and beauty items.Unilever (UL) Seeks to Divest Graze Amid Strategic Shift to Personal Care A supermarket aisle filled with Household and Personal Care Products. The company has reportedly begun reaching out to various consumer goods groups and food manufacturers. Unilever is reportedly analyzing its interest in purchasing Graze, which it acquired in 2019 for £150 million. The healthy snack brand could be valued between £50 million and £80 million in any sale now. The divestment of Graze comes as Unilever’s Chief Executive Officer tries to reorient the company’s product portfolio. The CEO has already increased focus on the health, beauty, and personal care segments while reducing the footprint of the food business. Unilever PLC (NYSE:UL) is a global consumer goods company headquartered in the UK. It makes and sells everyday products across five segments: Beauty & Wellbeing, Personal Care, Home Care, Foods, and Ice Cream. Its top brands include Dove, Knorr, Hellmann’s, Magnum, Rexona, and Ben & Jerry’s. While we acknowledge the potential of UL as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 10 Best Value Penny Stocks to Buy According to Analysts and 12 Best Augmented Reality Stocks to Buy According to Analysts. Disclosure: None. View comments |
||
| 27.06.25 16:20:01 | European Equities Close Higher in Friday Trading; Inflation Rises in France, Spain |  |
| The European stock markets closed higher in Friday trading as the Stoxx Europe 600 rose 1.09%, Germa PREMIUM Upgrade to read this MT Newswires article and get so much more. A Silver or Gold subscription plan is required to access premium news articles. Upgrade Already have a subscription? Sign in |
||
| 27.06.25 04:23:03 | Unilever to pay $1.5 billion for men's grooming brand Dr Squatch, FT reports | |
| (Reuters) -Unilever is paying $1.5 billion (1.09 billion pounds) to buy men's personal care brand Dr Squatch from private-equity firm Summit Partners, the Financial Times reported on Friday, citing sources. The deal was announced earlier this week by all three parties, without disclosing financial details. Unilever reiterated on Friday that it will not disclose the terms of the deal, while Summit Partners did not immediately respond to a Reuters request for comment outside of regular business hours. Reuters could not immediately verify the FT report. Reuters reported last year that Summit was exploring a sale of the men's grooming brand at a valuation of more than $2 billion. Launched in 2013 by founder and CEO Jack Haldrup, and named after the mythical creature Sasquatch, Dr Squatch started out by selling handmade bar soaps for men. The Los Angeles-based company currently sells deodorant, hair care products, colognes, lotions and other personal care products through its website and at brick-and-mortar stores. Unilever said earlier that the acquisition of Dr Squatch would complement its men's personal care offerings, which include Axe and Dove Men+Care deodorants, and that it would scale Dr Squatch internationally. (1 British pound = $1.3727) (Reporting by Rhea Rose Abraham in Bengaluru; Editing by Anil D'Silva and Mrigank Dhaniwala) |
||
| 26.06.25 10:51:00 | South Africa Tea and Coffee Industry Report 2025 | Rooibos and Honeybush Make Waves as Health-Conscious Alternatives | |
| Company Logo This comprehensive report on South Africa's tea and coffee industry highlights key aspects of production, processing, and sales, including the surge in prices and the state of government-backed tea estates. It profiles 32 leading companies, such as Unilever, Nestlé, and Famous Brands Coffee Company, as well as notable rooibos and honeybush producers. With the rising popularity of coffee culture, increased coffee shop openings, and growing consumer demand for specialty beverages, the industry faces challenges like climate change and economic constraints. Dublin, June 26, 2025 (GLOBE NEWSWIRE) -- The "The Tea and Coffee Industry in South Africa 2025" report has been added to ResearchAndMarkets.com's offering. This report focuses on the tea and coffee industry in South Africa, including the rooibos and honeybush industries. It includes information on production, processing, sales and retail outlets, the sharp rise in prices, consumption and the current position of state-backed tea estates. Notable players, investments and developments are discussed. The country remains heavily dependent on coffee and tea imports, with only minimal local production. In 2024, imports grew by 10%, driven by rising demand. However, coffee prices, despite a slight decline since March 2025, have recently reached record highs, while tea prices have also surged. These cost increases have led consumers to cut back or trade down. Despite these pressures, demand for ground coffee continues to rise, fuelled by a growing coffee culture and the expansion of coffee outlets. Still, the sector faces several challenges, including climate change, land expropriation, and low economic growth, which may limit demand for premium tea and specialty coffee products. Coffee prices are expected to rise further, with some industry players warning of a potential coffee shortage if the trend continues. Higher prices may prompt consumers to cut back on spending, putting pressure on coffee shop chains. Despite this, demand for ground coffee remains robust, driven by at-home consumption and the growing coffee culture. In the tea segment, local black tea consumption is declining, and rooibos consumption remains flat. However, the healthy drinks trend is anticipated to boost demand for both rooibos and honeybush teas. There are profiles of 32 companies including major processors and suppliers such as Unilever, National Brands and Nestle, coffee companies such as Famous Brands Coffee Company, tea companies such as Joekels Tea Packers and rooibos and honeybush companies such as Cape Rooibos, Rooibos Ltd, Melmont Honeybush Tea, Agulhas Honeybush Tea and Bitou Honeybush. Story Continues Introduction While a small amount of coffee and black tea is produced locally, the country relies almost entirely on imports. Coffee and tea imports grew by 10% in 2024. Coffee prices, despite edging down since March 2025, have climbed to record highs recently, while tea prices have also seen marked increases. This has led to consumers trading down or cutting back. Nevertheless, demand for ground coffee is growing, driven by a growing coffee culture which is fuelling the growth of coffee outlets. Record coffee price increases could put coffee shops under pressure. The sector faces challenges including climate change, land expropriation and low economic growth which could limit demand for high-end tea and speciality coffee products. Trends A number of coffee shops use loyalty programmes to drive sales. Bubble tea shops are becoming popular, following the global trend. Consumers are demanding traceability of their coffee beans. Demand for specialty coffee and high quality ground coffee is growing. Matcha, a green tea juice, is sought after by people looking for healthy drink alternatives. Rapid expansion of coffee shops. Rooibos extracts are increasingly being used as skincare and healthcare products. Significant coffee and tea price increases. The healthy food and drinks trend is driving demand for functional tea products. The trend in convenience is driving the growth of capsule and ready-to-drink products. Opportunities Importing coffee in a strategic way from certain regions or using containers to hedge high prices. Selling and exporting health teas like rooibos and honeybush. Speciality coffee shops. Tea shops, specifically bubble tea. Challenges Climate change threatens to reduce the areas where coffee and tea can be grown. Coffee and tea prices have increased significantly in recent years. Government funded tea estates have become unsustainable. Low economic growth and weak consumer spend. The cost of raw materials has increased significantly. The honeybush tea sector has a number of challenges, including onerous compliance and certification requirements. There is some concern that the coffee shops sector is overtraded. Water outages. Key Topics Covered: 1. INTRODUCTION 2. DESCRIPTION OF THE INDUSTRY 2.1. Industry Value Chain 2.2. Geographic Position 2.3. Size of the Industry 3. LOCAL 3.1. State of the Industry 3.2. Key Trends 3.3. Key Issues 3.4. Notable Players 3.5. Trade 3.6. Corporate Actions 3.7. Regulations 3.8. Enterprise Development and Social Development 4. AFRICA 5. INTERNATIONAL 6. INFLUENCING FACTORS 6.1. Economic Environment 6.2. Labour 6.3. Environmental Issues 6.4. Technology, R&D, Innovation 6.5. Government Support 6.6. Input Costs 6.7. Land Reform Policy 7. COMPETITIVE ENVIRONMENT 7.1. Competition 7.2. Ownership Structure of the Industry 7.3. Barriers to Entry 8. INDUSTRY SUMMARY 9. OUTLOOK 10. INDUSTRY ASSOCIATIONS 11. REFERENCES 11.1. Publications 11.2. Websites APPENDIX Summary of Notable Players APPENDIX List of HS Codes Covered COMPANY PROFILES Agulhas Honeybush Tea Cc Bean There Coffee Company (Pty) Ltd Big Five Rooibos Company (Pty) Ltd (The) Brewkombucha (Pty) Ltd Caco Services (Pty) Ltd Cape Natural Tea Products (Pty) Ltd Cape Rooibos (Pty) Ltd Carmien Tea (Pty) Ltd Clipper Coffee And Tea Cc Colombo Brew Co (Pty) Ltd Famous Brands Coffee Company (Pty) Ltd Global Coffee Exports (Pty) Ltd Happy Culture Kombucha (Pty) Ltd Honey Bush Processing (Pty) Ltd Honeybush Natural Products (Pty) Ltd Joekels Tea Packers (Pty) Ltd L C Packaging (S A) (Pty) Ltd Mastertons Coffee And Tea Specialists (Pty) Ltd Melmont Honeybush Tea Cc National Brands Ltd Nestle (South Africa) (Pty) Ltd Peacock Tea And Coffee (Pty) Ltd Red T Company (Pty) Ltd (The) Rooibos Ltd Sabie Valley Coffee Cc Sanpeace (Pty) Ltd Skimmelberg (Pty) Ltd Tea And Coffee Distributors (Eastern Province) (Pty) Ltd Theonista (Pty) Ltd Unilever South Africa (Pty) Ltd Union Hand Roasted (Pty) Ltd Vida E Caffe Holdings (Pty) Ltd For more information about this report visit https://www.researchandmarkets.com/r/arfavs About ResearchAndMarkets.com ResearchAndMarkets.com is the world's leading source for international market research reports and market data. We provide you with the latest data on international and regional markets, key industries, the top companies, new products and the latest trends. CONTACT: CONTACT: ResearchAndMarkets.com Laura Wood,Senior Press Manager press@researchandmarkets.com For E.S.T Office Hours Call 1-917-300-0470 For U.S./ CAN Toll Free Call 1-800-526-8630 For GMT Office Hours Call +353-1-416-8900 View Comments |
||
| 23.06.25 10:59:00 | Unilever acquires Dr. Squatch, valuing brand’s viral marketing to Gen Z men | |
| This story was originally published on Marketing Dive. To receive daily news and insights, subscribe to our free daily Marketing Dive newsletter. Dive Brief: Unilever is acquiring men’s personal care brand Dr. Squatch from private equity firm Summit Partners, according to a press release. Financial terms of the transaction were not disclosed. The deal is part of the CPG giant’s efforts to align its portfolio around premium and high-growth verticals. Unilever praised Dr. Squatch’s “built-in-culture” brand, which has been established through viral social media marketing and partnerships with influencers and celebrities like Sydney Sweeney. Unilever is broadly ramping up its spending on social media and influencers to reach different global markets and consumer groups. Snapping up Dr. Squatch also sees the company return to direct-to-consumer (DTC) acquisitions, a strategy that has not always panned out. Dive Insight: Unilever is dipping back into the DTC well with the acquisition of a brand that has successfully captured the attention of a desirable cohort of Gen Z men (and previously been cited by the Dove and Hellmann’s owner as a rising competitive threat). Founded in 2013, Dr. Squatch sells a line of grooming products, including soaps, lotions and shampoos, that boast natural ingredients and are available through e-commerce, national retailers like Walmart and subscription bundles. The DTC aspect of the business gives Unilever more first-party data to work with at a time when refining personalization and targeting are of pressing importance for marketers. Dr. Squatch has also proved savvy with social media-first marketing, another priority for Unilever. The company’s new CEO Fernando Fernandez plans to allocate half of Unilever’s advertising spend to social while significantly expanding its brands’ work with influencers. Dr. Squatch has become well known for a particularly bro-friendly bent, with ads packed with sexual innuendo and recognizable stars. A viral campaign launched last year features Sydney Sweeney as a “Body Wash Genie” who responds to men’s desires (for natural grooming products, of course). The two recently partnered to sell limited-edition soap containing some of the “Euphoria” actor’s bathwater in a stunt indicative of Dr. Squatch’s go-for-broke approach. In a statement around the acquisition, Unilever personal care president Fabian Garcia called out the upstart’s “clever digital engagement strategies” and teed up an expansion beyond its home market. “Building on its success in the U.S., we are excited to scale the brand internationally and complement our offering in the fast-growing men’s personal care segment,” said Garcia. Story Continues Unilever has been busy restructuring, with the goal of shedding low-performing units and reorienting around premium verticals. It has previously used acquisitions as a way to modernize, with mixed results. In 2016, the company purchased Dollar Shave Club, an innovator in subscription-based shaving, for $1 billion, one of the biggest bets legacy CPGs had made on the DTC model at that point. Unilever sold a majority stake in the razor brand in 2023 to private equity. Recommended Reading How Dr. Squatch turned Sydney Sweeney into the ‘Body Wash Genie’ View Comments |
||
| 18.06.25 16:30:00 | Reinventing What's Possible in the Inbox: Attentive Surges Past 1,000 Email Customers; Launches AI Pro for Email | |
| Major enterprise brands like Unilever and Carter's are consolidating their messaging channels with Attentive, achieving significant gains in campaign performance and ROI NEW YORK, June 18, 2025 /PRNewswire/ -- Attentive®, the AI-powered performance messaging platform, today announced that it has surpassed 1,000 customers using its high-performance email solution.Attentive Logo (PRNewsfoto/Attentive) Major enterprise brands, including household names like Unilever and Carter's, have recognized the significant value in informing their email campaigns with intelligence from their SMS, RCS and messaging programs. Attentive is at the center of this ecosystem, enabling brands to capture real-time behavioral signals from across channels, recognize more shoppers, act on intent in real time, and deliver coordinated, high-performing messages at scale through industry-leading deliverability. "Attentive's SMS solution was our foot in the door to revitalize our program toward stronger ROI, and it has been the proof we've needed to make this bigger," said Jenna Cook, Director of Customer Communications at Carter's. "So we said, 'let's bring that same Attentive magic that we have in SMS – and the same AI capabilities, smart segmentation and personalization – into our email program so we can have the same impact but for 10 times the amount of customers." Introducing AI Pro for Email: Smarter, More Personalized Messaging With email adoption surging, Attentive is doubling down on its investment on AI and innovation. Today, the company announced the general availability of AI Pro for Email, enabling brands to identify their most valuable subscribers and message them when they are most likely to convert —at scale. Unlike other solutions, AI Pro for Email leverages insights from cross-channel programs and on-site behavior to personalize and optimize messages automatically. Predictive suppression boosts open rates by excluding low-engagement recipients, driving better performance, higher efficiency, and more revenue. The four features of AI Pro include: Audiences AI, which builds intelligent segments that maximize campaign performance. Identity AI, which identifies high-intent site visitors and triggers a higher volume of multi-channel messages. Send Time AI, which delivers messaging when each unique subscriber is most likely to engage. Brand Voice AI, which fine-tunes text messages and subject line copy with a brand's unique tone. Customers using AI Pro across both SMS and Email are seeing incremental performance increases of up to 40% on average in multi-channel campaign revenue with Audiences AI and up to 20% revenue lift in multi-channel abandonment journeys with Identity AI. Story Continues "Using AI Pro across email and SMS has dramatically streamlined our segmentation and decision-making process, saving us time while helping us make smarter, more objective choices. It's enabled us to reach more customers with greater precision," said Jennifer Peters, Director of DTC, Martech, and Digital Compliance at OLLY, a Unilever company. "The results speak for themselves — since leveraging AI Pro for email, we've seen a 201% increase in revenue and achieved 9x greater ROI compared to our base segment." "With Attentive, large brands are moving into a future defined by real-time personalization, multi-channel orchestration, and performance-first messaging. Attentive is the perfect platform to meet their needs and exceed their expectations across these areas," said Amit Jhawar, CEO of Attentive. "We've pioneered what's possible on SMS and RCS, and today we're proud to do the same for email marketing." About Attentive Attentive® is the AI-powered mobile messaging platform transforming the way brands personalize consumer engagement. Attentive enables marketers to craft tailored journeys for every subscriber, driving higher recurring revenue and maximizing campaign performance. Activating real-time data from multiple channels and advanced AI, the platform personalizes content, tone, and timing to help brands deliver 1:1 messages that truly resonate. With a top-rated customer success team recognized on G2, Attentive partners with marketers to provide strategic guidance and optimize SMS and email campaigns. Trusted by leading global brands like GUESS, Urban Outfitters, and Steve Madden, Attentive ensures enterprise-grade compliance and deliverability, supporting trillions of interactions across more than 70 industries. To learn more or request a demo, visit www.attentive.com or follow us on LinkedIn, X (formerly Twitter), or Instagram. Media Contact: press@attentive.comCision View original content to download multimedia:https://www.prnewswire.com/news-releases/reinventing-whats-possible-in-the-inbox-attentive-surges-past-1-000-email-customers-launches-ai-pro-for-email-302485298.html SOURCE Attentive View Comments |
||
| 18.06.25 09:42:59 | Update: Market Chatter: Unilever Proposes Peter ter Kulve as CEO of Ice Cream Business | |
| (Updates to include a statement from a Unilever spokesperson in the third paragraph.) Unilever (U PREMIUM Upgrade to read this MT Newswires article and get so much more. A Silver or Gold subscription plan is required to access premium news articles. Upgrade Already have a subscription? Sign in |
||
| 17.06.25 17:49:53 | Unilever Faces Worker Protests Over Ivory Coast Exit | |
| Unilever PLC (NYSE:UL) is among the best bear market stocks to buy according to analysts. Unilever PLC (NYSE:UL) is facing backlash from its workers in Ivory Coast, who accuse the giant of violating their collective bargaining agreement by refusing to guarantee severance pay in case of layoffs amid the sale of the business in that region. There is one brand that comes to mind when we think of everyday essentials: Unilever PLC (NYSE:UL). However, it is due to the underperformance of the Ivory Coast unit that British-based Unilever (LON:ULVR) has decided to sell all of its shares to a local investor group led by wholesale distributor Société de Distribution de Toutes Marchandises Côte d’Ivoire (SDTM). If it happens, as many as 160 employees are on the edge of redundancy. Workers began protesting at Unilever offices in Abidjan on April 2, driven by fears regarding the potential layoffs. However, the management reported that the transaction was merely a way of selling shares and would not result in the termination of contracts, citing severance pay as irrelevant. Unilever PLC (NYSE:UL) is a fast-moving consumer goods (FMCG) company based in the United Kingdom. With five main segments, namely Beauty & Wellbeing, Personal Care, Home Care, Foods, and Ice Cream, the company is focused on adding vitality to life. Founded in 1860, the company provides its products under various brand names, like AXE, Ben & Jerry’s, Dove, Hellmann’s, Horlicks, and Knorr. While we acknowledge the potential of UL as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money. Disclosure: None. View Comments |
||
| 23.04.25 11:46:45 | Unilever has surpassed Euronext Amsterdam and FTSE returns in the past decade. | |
| Investment Thesis Pricing as a result of inflationary pressures and low demand elasticity in key categories was the main driver of Unilever's strong top-line performance during the coronavirus pandemic. By the end of the forecast period, organic growth is anticipated to slow to less than 4% as the company turns its attention to volume growth and mix. Despite marketing products tailored to local markets and preferences, multinational consumer product companies still have to contend with small, local, and nimble rivals. Sufficient investment in marketing, trade, and R&D guarantees that products align with regional consumer preferences. However, the stock has underperformed in comparison to peers of similar size and stature due to declining investments in R&D, capital expenditure, and marketing, which have resulted in losses of market share and a weak organic growth rate.It is believed that moving from a matrix structure to a new organizational structure centered on business groups will improve execution, accountability, and agility. The management has made significant investments in active portfolio management, selling off low-growth underperformers and investing in important brands and categories through bolt-on acquisitions as well as organic growth. In emerging markets, where Unilever sources over 60% of its sales, population growth, urbanization, and economic expansion are secular drivers that support medium-term volume. Warning! GuruFocus has detected 6 Warning Sign with UL. Notable Guru HoldingsUnilever has surpassed Euronext Amsterdam and FTSE returns in the past decade. Unilever is not held by any notable value investor at the time of writing this report. Investment Upsides Within the broad HPC and packaged food segment, Unilever's eight different categorieslaundry care, ice cream, haircare, bath and shower, deodorant, skincare, and dressingsaccount for 80% of its net sales. Over 60% of Unilever's revenue comes from grocery stores, with skincare and haircare receiving the least exposure.Due to the company's well-established position in the supply chain, which has been developed over decades of operation in these markets, the nutrition, ice cream, personal care, and homecare segments (roughly 75% of group sales) show indications of a broad economic moat. As might be expected, Unilever holds significant positions in most of the categories within those four segments, and its shelf space share generally corresponds to its market shares. As one of its strong intangible assets, Unilever's significant shelf space reflects the company's established position in the supply chain.The high cost of acquiring new customersmostly marketing and R&D expensesis another significant industry challenge. Due to its size and reach, Unilever is able to generate enough cash flow to support its brands and pay for the slotting fees required when launching new productsan intangible asset that new competitors cannot match. With the exception of high-end cosmetics companies, Unilever spent the most of its revenue in 202314 percenton advertising and promotion. For the bigger players, this amount of spending generates a positive feedback loop since, if done well, increased marketing and line extension expenditures can spur volume and category growth. Story Continues The market may be penetrated by new players, and startups may offer a retailer price leverage over major producers. Allocating shelf space on a localized, trial basis can help reduce the substantial risks of supply chain disruption associated with the smaller players. Due to cost advantages resulting from economies of scale, incumbents are in a good position to duplicate the competitive product and provide it to retailers at a lower price. This allows major players, like Unilever, time to adapt to the entry of a new brand. The most established vendors in the retailers' supply chains are shielded by the high barriers to entry created by this self-reinforcing combination of moat sources.Strong brand equity is better built in categories with a higher level of product differentiation. With characteristics of brand power in specific homecare, personal care, and beauty and well-being categories, Unilever has been successful in adjusting prices to reflect inflation trends. According to their framework, which compares the business unit's operating margin with a peer group of competitors or divisions of competitors, after adjusting for discretionary expenses and costs with high accounting-related subjectivity, Unilever demonstrates healthy cost advantages at the group level. In the top half of the home and personal care coverage, Unilever, a well-known international ice cream company, has a high direct operating margin. More comprehensive research that takes into account factors like market share, relative size, and regional concentration, however, might yield stronger findings. Unilever has a 20% global market share, which is twice as large as its nearest rival, Nestle, despite having low margins (11% in 2023). The US ice cream division of Nestle, which was sold to Froneri in 2019, had an estimated EBITDA margin of 13%15% or an EBIT margin of slightly over 10%. Furthermore, the operating margin of Froneri, a joint venture between Nestle and PAI Partners, was only 10%, indicating lower profitability.Unilever's ability to sustain excess returns on invested capitalan average ROIC of 18% over the last five years and 20% over the last tensupports its wide moat rating. Over the next five years, this percentage is anticipated to rise to 17% thanks to Unilever's pricing and cost-cutting initiatives, which should lessen pressure in a highly competitive and inflationary environment. Intrinsic ValuationUnilever has surpassed Euronext Amsterdam and FTSE returns in the past decade. The target share price for Unilever is $54.45. This suggests 2024 multiples of 20 times earnings and 13 times enterprise value/EBITDA, a free cash flow yield of 3.5%, a dividend yield of 3%, and a euro/dollar exchange rate of 1.03. Due to strong brand positioning and good demand elasticities, Unilever has been able to lead pricing while minimizing volume impact. It is anticipated that 2024 will be a normalization year, with volume increasing by about 3% and the pricing contribution to organic growth approaching the long-term average. It is anticipated that the midcycle assumptions for organic growth and its constituents of price, volume, and mix will somewhat revert.Another significant factor influencing valuation is the mid-term EBIT margin; Unilever's underlying EBIT margin peaked in fiscal 2019 at 19.1%. Nonetheless, the midcycle margin assumption is at 18.6% due to indications of a shifting perspective on investment levels and inflationary pressures. According to the company, Unilever and its shareholders would benefit more from a more balanced value-creation strategy. Investment Downsides Value-destructive acquisitions could be expensive in a competitive market due to Unilever's financial flexibility and strong balance sheet. Nonetheless, Unilever has restructured its portfolio, sold off low-growth companies, and purchased high-quality, high-growth brands. Economic downturns have not historically had a major impact on the consumption of packaged foods, although premium and discretionary food categories have seen modest drops during downturns. There is a translational currency risk because Unilever reports in euros. With more than 60% of group sales originating from emerging markets, the company is more exposed to these areas than some of its competitors. Unilever's material environmental, social, and governance issues are unaffected by its uncertainty rating. Nonetheless, single-use plastic is emphasized as a possible source of ESG risk. Despite the possibility of ESG risks for all packaged food companies, Unilever's response to these risks is more robust than average. Portfolio Management Over the last ten years, Unilever has continuously delivered respectable returns to shareholders, outperforming both the FTSE and Euronext Amsterdam. Since 2012, dividends have been the favored way to return capital, with a payout ratio of at least 60%. Although management has typically created value when repurchasing shares, share repurchases have not significantly increased shareholder returns. It is anticipated that Unilever will continue to pay out a high dividend and repurchase shares opportunistically, with tuck-in acquisitions probably continuing to be given priority.Even though Unilever is a very acquisitive company, it has sold assets to finance a large amount of its acquisitions. Since 2010, the company has spent about EUR 2 billion on acquisitions, which is less than 4% of its total free cash flow. Value has been added by Unilever's mergers and acquisitions, such as the $1 billion purchase of Dollar Shave Club and the $3.7 billion Alberto Culver deal. However, Unilever has lost a fiercely competitive and commoditized category that is unlikely to support growth in the medium term as a result of the disposal of the spreads and tea businesses. This article first appeared on GuruFocus. View Comments |
||
| 23.04.25 09:00:00 | Ben and Jerry sold out to Unilever 25 years ago—now they’re going to war | |
| Under overcast skies on a brisk Wednesday last month, more than two dozen Ben & Jerry’s employees at the ice cream company’s global headquarters in Vermont walked out and stood silently in front of their office building. Some bowed their heads and others stared straight ahead as the wind whipped flags—Black Lives Matter, Pride, and the stars and stripes—on a nearby pole. Almost hidden in the back row was company cofounder Ben Cohen, who started the ice cream franchise in 1978 with his pal Jerry Greenfield. The troupe was protesting what Ben & Jerry’s has called the firing of its CEO David Stever by the company’s parent, Unilever, one of the world’s largest conglomerates, with a market cap of about $150 billion. Stever had only been CEO since 2023, but he had worked for the company for 34 years. Unilever, the London-based firm behind products like Axe deodorant, Dove shampoo, Talenti ice cream, and Hellman’s mayonnaise, bought the famously progressive ice cream maker in 2000, triggering alarm at the time among allies like Vermont Senator Bernie Sanders and the state’s then-governor Howard Dean, along with customers and believers in the notion that businesses can be a force for good in the world. How could Ben & Jerry’s sell out? But Unilever did more than just promise to allow the company to continue mixing lefty activism and ice cream sales: The two parties labored over a lengthy merger agreement that allowed Ben & Jerry’s to have an independent chair and board to oversee the company’s activities around its promotions and political campaigns, according to a recent lawsuit. For years, this unheard-of arrangement worked fairly well. Late last year, however, the independent board launched a lawsuit against the company over perceived breaches of the merger agreement, and last month it added allegations about Stever’s ouster to an amended complaint. In court filings, the board accuses Unilever of silencing the ice cream maker’s attempts to make statements about the war in Gaza, and President Donald Trump’s policies. The complaint goes on to allege that Unilever neglected to make payments to certain suppliers and left-leaning philanthropic partners, too, all of which the board says were violations of previous agreements. The board further claims that along with the fact that it should have been consulted about Stever’s ouster, he was pushed out because he sided with Ben & Jerry’s board over several social media posts that Unilever opposed, according to the complaint. Unilever has sought to have the court case dismissed and is challenging Ben & Jerry’s board’s legal standing. It also denies “the meritless allegations from the Independent Board of Ben & Jerry’s,” the company told Fortune in a statement. “The facts presented in court will show that Unilever has worked constructively with the Independent Social Mission Board over the past 24 years, and that we remain committed to Ben & Jerry’s having a social mission.” Story Continues The company also says it had been “discussing a broader, global role” at Unilever for Stever, but that he decided to step down instead. According to Unilever, it spent weeks trying to discuss potential changes to the CEO role with the board, as it’s expected to do, but the board declined to engage with the company on this topic. Then, Unilever said, the board went public about its conversations with Stever. Cohen and Greenfield declined to be interviewed for this story. Stever declined to comment. The legal scuffle is taking place as Unilever prepares to spin off its ice cream division, including Ben & Jerry’s, to create a new company, while the independent board worries that its authority to make bold calls to protect the company’s social mission—a right that should survive through any sale or restructuring according to the agreement—will be eroded or ignored. And while Cohen is trying to buy back the company, he himself has admitted it’s a long shot—after all, the company could be worth several billion dollars. On one level, the legal showdown is a wonky corporate spat over boardroom power and an unusual governance plan. But Ben & Jerry’s board chair Anuradha Mittal argues that it’s more than that. Instead, she sees it as a battle over the soul of a storied American ice cream company, and an important test of corporate principles in an era when major companies are actively throwing away their previous beliefs to appease a new political climate. “This is a David and Goliath story,” she said, “and instead of rolling over, here is David saying ‘No.’” Unexpected match There were signs from the very beginning that the marriage was doomed. Twenty-five years ago, Ben Cohen and Jerry Greenfield were candid about their misgivings when they sold their ice cream enterprise—then a public company—to the multinational firm in a deal that the board approved in 2000. In a statement issued after the $326 million acquisition was announced, Cohen and Greenfield let the world know that they would have preferred to have maintained control of the brand. That had been their plan before Unilever bested competing bids for the company, including their own. At the time, the going thought was that the smaller brand’s noble ethos would influence how Unilever operated. Cohen separately issued a statement that opened with lyrics from a Grateful Dead song: Once in a while, you get shown the light In the strangest of places if you look at it right. The lyrics were a weird touch, but fitting for two famous Deadheads and ex-hippies. Since Ben & Jerry’s was founded, the Long Island–born longtime Vermont residents have voiced their progressive opinions on everything from the military-industrial complex to racial justice, LGBTQ+ rights, the criminal justice system, climate change, and CEO pay. At Ben & Jerry’s, they instituted a rule that the CEO could not earn more than five times the wages of the lowest-paid worker. Ben & Jerry's and Unilever spent more than a year negotiating the merger, and there were other buyers interested in buying the ice cream company, says Shahmeer Halepota, a Houston-based attorney who is representing the brand in its legal battle. “The only reason we went with Unilever is because they specifically promised to protect the social mission,” he told Fortune. What’s more, the whole reason Unilever wanted to buy Ben & Jerry’s, the lawyer added, was that its authenticity resonated with consumers. To be fair, Unilever had already built its reputation as a climate-sensitive company by 2000. Descriptions of its sustainable agriculture program impressed the Ben & Jerry’s team during their initial negotiations. What’s more, the Dutch businessman Paul Polman, who was CEO of the consumer goods company from 2009 to 2019, made sustainability a core focus of the business, burnishing Unilever’s reputation, and his own, as a climate leader. Over the years, Ben & Jerry’s brand established itself as a feisty semi-sovereign state within Unilever by advocating for things like the Occupy Wall Street movement in 2011 and creating a product flavor, Pecan Resist, to protest Trump policies in 2018. There were also signs of harmony between the companies. In 2020, Cohen told the New York Times that Ben & Jerry’s politics seemed to be rubbing off on Unilever. Following the murder of George Floyd in Minneapolis that year, Ben & Jerry’s was among the first brands to pull advertising from Facebook and Twitter over the platforms’ failure to control hate messages, and Unilever followed the smaller brand days later. “Continuing to advertise on these platforms at this time would not add value to people and society,” it said. Business was also booming, and Ben & Jerry’s became a revenue-driving property for Unilever. The conglomerate told Fortune in a statement that “Ben & Jerry’s has thrived under Unilever since the acquisition 25 years ago, growing revenues 500% and expanding its footprint from four to nearly 40 countries.” That success, it said, “has also enabled many millions of euros investment into Ben & Jerry’s social mission activities.” Israel-Gaza conflict and the Trump presidency The troubles that culminated in the current lawsuit began in 2021, when Ben & Jerry’s said it would no longer sell its products in disputed settlement territories occupied by Israel. Selling ice cream in those areas would not be aligned with the brand’s core values, the company said. (A Unilever representative was part of the committee that approved the resolution, according to Halepota and the complaint filed by Ben and Jerry’s.) The policy triggered a backlash and accusations of anti-Semitism against Ben & Jerry’s and Unilever. It was a charge that Greenfield and Cohen found “absurd,” Cohen said in a TV interview, adding they were both Jewish. Cohen and Greenfield had all but stepped away from the company after the sale, but the pair remained its symbolic leaders, and both are still employees. Facing calls for boycotts, Unilever issued statements to groups like the Anti-Defamation League to say it “rejects completely and repudiates unequivocally any forms of discrimination or intolerance.” A year later, Unilever sold the rights to distribute Ben and Jerry’s products within Israel and the occupied territory to its Israeli distributor, who would use only Hebrew and Arabic on its packaging. In a legal filing, it called this a response to “a legal and public relations crisis” created by Ben & Jerry’s 2021 decision and said that public outcry was accompanied by “the divestment of hundreds of millions of dollars in Unilever’s stock.” The Ben & Jerry’s board, shocked by what it saw as a betrayal, launched litigation against Unilever, settling with the company months later when Unilever recommitted to giving Ben & Jerry’s the right to control the brand’s mission, the complaint states. But the lawsuit claims that agreement didn’t last. Instead, it says, Ben & Jerry’s was thwarted in several attempts to speak out on public issues. “Despite its contractual commitment to ‘[r]espect and acknowledge’ the Independent Board’s primary responsibility over Ben & Jerry’s Social Mission and Essential Brand Integrity, Unilever has silenced each of these efforts,” the complaint reads, quoting the original agreement. One example, the board alleges in court filings, is a message that Ben & Jerry’s wanted to make in 2023 during the Israel-Hamas conflict that read: “Ben & Jerry’s calls for peace and a permanent and immediate ceasefire.” In response, Unilever threatened to dismantle the Independent Board and sue directors individually if they went through with it, court documents allege. The lawsuit notes that “over 140 countries around the world (including England, France, and Canada), Doctors Without Borders, and the Pope” had called for a ceasefire by this time. In a court filing, Unilever said it “was resistant to issue a statement at that time without also condemning terrorism and calling for the release of hostages.” Other alleged examples described in the lawsuit include Ben & Jerry’s calling on the U.K. to create a special visa for Palestinians, a statement decrying attempts to quell student protests, and an endorsement of Vermont Senator Bernie Sanders’ resolution calling for the U.S. to stop sending weapons to Israel, citing civilian deaths. The independent board also alleges that it was muzzled when it came to issuing statements about Trump on inauguration day earlier this year, and prevented from posting about Black History Month in February. Parts of the lawsuit pull back the corporate curtain to reveal tension that was evident between the five-person independent board and Unilever’s ice cream president, Peter ter Kulve. In one exchange, the Unilever executive explains to the board that, to his understanding, a Ben & Jerry’s post calling for a special visa for Palestinians was pulled because of poor timing. “[I]t coincided with the Iranian missile attack on Israel,” he wrote in an email, the court document says. “When the matter was escalated to me, I expressed concerns about the continued perception of antisemitism that is a persistent issue.” Mittal sent a pointed response, per the filing. Other than your “clairvoyant intuition,” she asked, “could you please point to any objective data point—such as a market study or third-party evaluation—that objectively confirmed your unilateral judgment that calling for safe passage of all refugees, including from Gaza will be viewed as antisemitism?” According to the lawsuit, Unilever’s head of ice cream did not respond. The executive did not respond to Fortune’s request for comment. In a court document, Unilever described Ben & Jerry’s Gaza-focused proposed messages as “one-sided company statements related to the highly divisive Palestinian conflict in the Middle East.” Unilever said in a legal filing that it sought to work with the board to ensure that its message about the student protests was balanced, and that it “offered to work with the Board to craft an appropriate statement focused on substantive issues without personal attacks on President Trump.” It also said in a court filing it had concerns about the timing of the message about special visas. “Unilever does not make these decisions lightly, as they consider a myriad of factors such as: geopolitical tensions, country-specific election advocacy laws, employee and customer safety, and public reception,” the court filing said. Unilever told Fortune that it “had discussions with the Board about only a small fraction of social media posts over the years—around 2%.” Leadership changes In some ways, the new lawsuit is a continuation of a debate that has entangled companies across the globe over whether they ought to be advocates for political change. During the pandemic and at other periods in the past few decades, companies faced pressure from employees and some investors to take a stand on fraught topics like police brutality, abortion, and immigration. Over the past few years, however, the pendulum has shifted, with more leaders voicing opinions opposing corporate activism. Among the titans who have been clear about this issue is Nelson Peltz, the billionaire activist investor behind Trian Partners, who took a seat on the board at Unilever in 2022. Peltz’s influence has been cited by business watchers as the source of several leadership changes at Unilever, including the ousting of the previous CEO. And Peltz also took issue with Ben & Jerry’s advocacy work in 2024, as he explained to the Financial Times last March. “You’ve got to get these politics out of the boardroom,” he said. “Ben & Jerry’s job is to sell ice cream, not to make political statements. And these people use anything for a soapbox that they have no right to do.” Peltz also said of the conflict in Israel: “I have my own feelings about a ceasefire. Israel has got to get a few things squared away before they get a ceasefire because what happened to them was despicable.” Peltz declined to comment for this story. Unilever is planning to spin off Unilever Ice Cream by the end of 2025. The new company will include the Ben & Jerry’s, Talenti, Breyer’s, and Magnum brands, and will be called the Magnum Ice Cream Company, Unilever said. But Ben Cohen is seizing the moment to step into the spotlight and make it known that he wants his company back. “In the year 2000, Unilever loved us for who we were,” Cohen told the Wall Street Journal earlier this month. “Now we’ve gone separate ways in our relationship. We just need them to set us free.” Cohen also acknowledged in that interview that the odds were against his quest. Unilever told Fortune that Ben & Jerry’s is “not for sale,” adding that its ice cream division “remains fully committed” to the company’s mission. The deal that Ben & Jerry’s struck with Unilever 25 years ago to maintain an independent, socially focused board should still be effective after the sale, according to its original terms. But Halepota fears that Unilever is paying lip service to the deal and questions whether the board will be empowered after the spinoff. He adds, however: "What I do trust is the independent board's fortitude to never give up the fight.” This story was originally featured on Fortune.com View Comments |
||
