Unilever, the FMCG multinational, is considering the sale of its tea division in light of declining sales.
Speaking during a conference call to announce the firm’s Q4 results, Unilever CEO Alan Jope described the firm’s tea business, which includes the PG Tips and Lipton brands, as being “more mature […], consolidated […] and structurally slower growing”, and said the future of the business would now be the subject of a strategic review.
“[The tea business] has a disproportionate large footprint in black tea, which is slower growing and also in developed markets”, he commented.
The firm said it had previously disposed of its spreads business in similar circumstances.
While it had not reached a conclusion about the future of its tea division, “all options remain on the table”, the company said.
Source: Unilever (via The Motley Fool)