Unilever has recently been parting ways with many of its key food businesses. Starting with the spinning off of its tea and spreads businesses, it continued last year with its ice-cream division. More recently, the multinational has announced the sale of long-term brands Unox and Zwan, and plant-based brand Vegetarian Butcher in March.
Now, it could be parting with another one. Unilever is considering the sale of UK healthy snacking brand Graze, reports the FT.
The company has approached a number of consumer goods groups and food manufacturers to offer them the brand, the FT claims.
Unilever purchased Graze in 2019 for a value of £150m (€175m), but one banker has suggested that if it were to be sold now, its value would only be between £50m (€58m) and £80m (€94m).
According to accounts filed at UK Companies House, Graze has made an operating loss every year since Unilever took over. The brand was only integrated into Unilever’s wider operations last year.
Unilever was contact and has declined to comment.
Will Unilever stay in food?
After rising to the position of CEO in February, Unilever’s Fernando Fernandez stressed that he was committed to the multinational’s food portfolio, pointing out that larger brands such as Hellmann’s and Knorr contributed to a large part of the company’s revenue (and 60% of food) and had similar margin structures as personal care. Last year, food generated €13.4bn of Unilever’s €60.8bn annual revenue.
However, he also suggested that smaller food brands may be more vulnerable, and that every brand, and even every category, must “earn the right” to remain in the company’s portfolio.
Many have speculated that Unilever will move decisively away from food.
