admin There have been many assumptions regarding Unilever’s tea business as they are conducting a “strategic review” for the same and this might lead up to selling of the business.
The company’s top leadership individuals have dropped multiple hits which strengthen our assumption concerning its tea business.
The CEO of Unilever, Alan W. Jope, while talking to analysts said, “The harsh reality is that two-thirds of our tea business remains core black tea, which is declining. We have really seen this trend play. It’s not a short-term thing; it’s a long-term trend, over a decade. We’ve had a lot of good effort at getting the core black tea back to growth, but we just don’t see it happening.”
The “strategic review” include the likes of Lipton and PG Tips brands in the slow sales growth environment.
Jope also said that the company will go through “all options” for the business, including selling a part of the business or selling the whole business. This is a global level business review so it is going to affect the tea business of Unilever in every part and every market of the world.
Graeme Pitkethly, Unilever’s CFO, told analysts in The Wall Street Journal story said, “All of that premiumization activity still is not able to make a difference because of the size of the black tea category.”
Tea is still one of the important beverages from health and business point of the world as it has many benefits like it can reduce cholesterol levels and increase immunity. But, in recent years, we have seen a steady decrease in its consumption as the taste of consumers is evolving.
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