× Business BUSINESS MOTORING SHIPPING & LOGISTICS DR PESA FINANCIAL STANDARD Digital News Videos Health & Science Lifestyle Opinion Education Columnists Moi Cabinets Arts & Culture Fact Check Podcasts E-Paper Lifestyle & Entertainment Nairobian Entertainment Eve Woman Travelog TV Stations KTN Home KTN News BTV KTN Farmers TV Radio Stations Radio Maisha Spice FM Vybez Radio Enterprise VAS E-Learning Digger Classified Jobs Games Crosswords Sudoku The Standard Group Corporate Contact Us Rate Card Vacancies DCX O.M Portal Corporate Email RMS
×

Unilever weighs scaling back on its tea business

NEWS
By Bloomberg | July 21st 2020

Unilever is considering substantially scaling back the potential disposal of its tea business and may keep some operations in emerging markets, people with knowledge of the matter said.

The multinational consumer group is debating whether to hold on to its tea business in India and Indonesia, according to the people.

Unilever is also considering excluding its stake in a PepsiCo Inc venture that makes Lipton bottled drinks, the people said, asking not to be identified because the information is private.

Removing these assets from the sale could reduce the eventual proceeds by as much as several billion pounds and make the portfolio less attractive to some potential bidders, the people said. The remaining parts of the business could fetch about 4 billion pounds (Sh424 billion) to five billion pounds, according to the people.

Details on the sale process could be announced as soon as this month, the people said. Unilever is scheduled to announce its half-year results on July 23, according to its website.

Unilever has been seeking to reshape its portfolio as consumers’ tastes change.

Deliberations are ongoing, and details of the potential divestment are still subject to change, the people said. A representative for Unilever declined to comment.

Sales in Unilever’s tea business declined by a low-single-digit percentage in the first quarter of this year, mainly due to especially weak demand in India and restaurant closures globally.

Share this story
New e-learning platform brings school to students
So far, MySchool is in use at several schools within Nairobi and other counties
Absa Bank net profit for 3 months up 24pc
The performance was mainly driven by growth in interest income, particularly in the small and medium enterprises.
.
RECOMMENDED NEWS
Feedback