Connect with us

Hi, what are you looking for?

Capital Business
Capital Business
Unilever also forecast that sales growth for 2020 would be in the "lower-half" of its multi-year projection of between three and five percent, falling further below that for the first half of the year.

Agriculture

Unilever seeks to turn over new leaf for global tea business

Unilever also forecast that sales growth for 2020 would be in the “lower-half” of its multi-year projection of between three and five percent/AFP

THE HAGUE, Netherlands, Jan 30 – Anglo-Dutch consumer giant Unilever said Thursday it is reviewing its global tea business including Lipton and PG Tips after sales went off the boil, while eyeing the “unknown” impact of the new coronavirus outbreak.

Sales of black tea, source of the humble cuppa, have dipped in the developed world as consumers instead lap up fruit and herbal teas, the Rotterdam-based firm said as it released its annual results.

“We are continuing to evaluate our portfolio and have initiated a strategic review of our global tea business,” chief executive Alan Jope said in a statement.

Unilever says it is the world’s biggest tea company with brands that also include Brooke Bond, Bushells and Pukka.

“Tea saw price-led growth, however volumes declined due to subdued consumer demand for black tea in developed markets,” Unilever said.

“We continued to focus on the growing segments of premium black tea, black tea in emerging markets and fruit and herbal variants, with our premium herbal brand Pukka performing well,” it added.

The firm, whose products also include Ben and Jerry’s ice cream and yeast spread Marmite, reported a 38.4 percent slump in profits to six billion euros ($6.5 billion) in 2019 after a disappointing fourth quarter.

Unilever also forecast that sales growth for 2020 would be in the “lower-half” of its multi-year projection of between three and five percent, falling further below that for the first half of the year.

“The impact of the coronavirus outbreak is unknown at this time,” the Unilever statement said.

The novel coronavirus which first emerged in the Chinese city of Wuhan has so far claimed 170 lives while more than 7,000 people have been infected, according to Chinese authorities.

Advertisement. Scroll to continue reading.
Click to comment
Advertisement

More on Capital Business

Executive Lifestyle

NAIROBI, Kenya, Mar 12 – The country’s super wealthy individuals are increasing their holding of bonds, gold and cash, a new report by Knight...

Ask Kirubi

NAIROBI, Kenya, Mar 9 – Businessman and industrialist Dr. Chris Kirubi has urged members of the public to exercise extreme caution when making any...

Ask Kirubi

NAIROBI, Kenya, Mar 24 – Businessman and industrialist Dr. Chris Kirubi is set to own half of Centum Investment Company PLC, following a go-ahead...

Ask Kirubi

It is without a doubt that the COVID-19 pandemic has caught the whole world by surprise. Although its full impact is yet to be...

Headlines

NAIROBI, Kenya, Mar 18 – Commercial Banks have been ordered to provide relief to borrowers on their personal loans, with loans eligible from March...

Kenya

NAIROBI, Kenya, Jun17 – Kenya’s tea leaves manufacturer Kericho Gold, has been awarded the Superbrands Seal by Superbrands East Africa for their quality variety...

Coronavirus

NAIROBI, Kenya, Apr 13 – As the local telecommunications industry gears up to roll out 5G networks in the country, the Communications Authority of...

Coronavirus

NAIROBI, Kenya, Mar 22 – Airtel Kenya is offering free internet access for students in order to enable continued learning at home in the...