Unilever is planning to separate its tea business and make it a standalone entity. The tea products is one of Unilever's many brands, but from next year, the tea business will operate separately from the brands, becoming a company. The new move is in line with Unilever's review of its global tea business.
The company is the producer of Brooke Bond, PG Tips and Lipton, which is one of the most popular tea brand in Nigeria. Unilever said it will soon begin the separation process. Already, the company has retained its tea businesses in India and Indonesia to boost its new direction.
The partnership interests Unilever has in the ready-to-drink tea joint ventures were also retained as the company believes the tea business has an 'exciting future" enough to fuel Unilever's standalone business ambition. AllNews learnt that in 2019, Unilever generated €2 billion from its tea business.
In a statement Unilever cited in its recent release, the company had said, "In January, we announced a strategic review of the global tea business, which includes leading brands such as Lipton, Brooke Bond and PG Tips. This review has assessed a full range of options. We will retain the tea businesses in India and Indonesia, and the partnership interests in the ready-to-drink tea joint ventures.
"The balance of Unilever’s tea brands and geographies and all tea estates have an exciting future, and this potential can best be achieved as a separate entity. A process will now begin to implement the separation, which is expected to conclude by the end of 2021."
The Nigerian arm of Unilever has now informed the investing public and its shareholders that the plan to separate the tea business is still on, and said it will "keep the Nigerian Stock Exchange informed of any subsequent development on this matter as it affects Unilever Nigeria Plc. The disclosure is made for and on behalf of the Board of Unilever Nigeria Plc." the new statement seen by AllNews stated.
After Unilever Nigeria's former Chief Executive Officer, Yaw Nsarkoh, was forced to resign following declining revenue, with Carl Raymond Cruz appointed as new CEO, it seems the manufacturer of Close-Up and Rexona, has still not been able to fix its revenue leak.
The change of management last year hasn't brought succour to Unilever which suffered a significant drop in its revenue for the second quarter of 2020 when compared to the corresponding period of 2019. The revenue fell by 40% within the three months of April to June 2020, reflecting the revenue problem of Unilever.
Last year, between April and June 2019, Unilever recorded N23.4 billion, but the same period this year saw the company recording far below 2019 Q2 revenue, after posting N14 billion for 2020 Q2 - making it the worse since 2016. A further look disclosed that in the First Half of 2019, Unilever recorded N42.6 billion, but the company could only generate N27.3 billion between the first six months of 2020.