Unilever touts new products, structure to fight rivals

LONDON: Anglo-Dutch consumer goods maker Unilever has told investors on that it expects new products and a leaner organisation to help win an intensifying battle to sell packaged goods around the world.

The maker of Dove soap and Knorr soup, which is under huge shareholder pressure since rebuffing a US$143bil takeover bid in February from Kraft-Heinz, posted an unexpected slowdown in sales last month, citing lost market share to smaller rivals.

The company’s 20 billion-euro-a-year personal care business, often seen as its most attractive, posted only 2.4% growth in the first nine months of the year, but the unit’s president, Alan Jope, said it should be back above 4% soon.

“I’m not going to give an exact date,” Jope said during an investor event in New Jersey that was broadcast online. But I don’t think I’d be standing here with this tone and this cocky, relaxed position if it wasn’t going to come around quite soon.”

In explaining the slowdown, Jope pointed to lower growth of the global market, weakness in Indonesia and Brazil – two of its big markets – and increased competition from local rivals, such as Patanjali in India and Wardah in Indonesia.

While the first two issues were temporary, Jope said local competition was a long-term phenomenon, and largely why Unilever was focusing on increasing its agility in local markets. He cited several new brands that would aid the unit’s growth going forward, including prescription-strength Dove products for people with psoriasis or eczema; Skinsei, a personalised, subscription-based skincare regimen sold directly to consumers; and a beauty brand called Love Beauty and Planet.— Reuters