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Diving briefs:
Dive Insights:
Unilever bought a vegetarian butcher shop in 2018 from founder Jaap Korteweg. Meanwhile, it grew by an average double digits, expanding to over 55 markets worldwide.
Despite its success, Unilever focuses on reducing its portfolio under the company’s 37-year veteran new CEO, Fernando Fernandez. Unilever unexpectedly expelled its former CEO last month Amid concerns, the company was not moving fast enough in its conversion efforts.
Unilever said vegetarian butchers are not suited to food and personal care products companies for two reasons. First, there are different supply chains and sourcing models that reduce scalability within the company’s wider food portfolio. Second, the vegetarian butcher also has a “unique set of technical and R&D abilities” that differ from Unilever’s other products.
“The difference makes selling the brand the best option for both Unilever and vegetarian butchers,” the company said in a statement.
For companies looking to do more with less, selling a brand that doesn’t create much synergy with other portfolios is a logical place to start. The company can not only dedicate more finite resources to better, faster growing brands, but also use the money it receives from sales to pay off debts and invest in other parts of its business.
Sales, which are expected to close in the third quarter of this year, come as plant-based food spaces have become dimmed with stars, especially in the US.
Consumer demand for products is slowing, forcing manufacturers to cut spending, pull back product development and fire employees. It surpassed the meat that was announced last month Cuts 6% of the workforce and suspends operations in China.
