Unilever to offload historic brands to please shareholders
Share price falls 0.28 percent, underperforming the broader London market
by Abi Moses on 20th March, 2017 if ($blog_item->blog_updated_date != '0000-00-00 00:00:00'): ?> and updated 20th March, 2017 1:23pm endif; ?>
As a move that has been compared to a 'garage sale', Unilever are reportedly disposing of some of its much-loved brands. Preparing for a £6-billion disposal programme, the conglomerate face criticism in the wake of Kraft Heinz’s failed bid for the consumer goods brand.
Closing lower than expected on Friday, the FTSE 100 company will allegedly offload Flora margarine and Stork butter brands, as the group’s chief executive, Paul Polman, gets ready to address worries following Kraft Heinz’s withdrawn $143 billion offer. With shareholders feeling that their return is not on the company's priority list.
As a result, Unilever have had no option but to cut costs, cutting ties with some of their most well-known brands.Although Flora is one of Unilever's billion-dollar brands, changing consumer habits mean that it has struggled in recent years, with the company having no room for risks at the moment.
"Flora sales in the UK fell 12% last year to £126.4m, while sales of Unilever's other spreads brands Bertolli, I Can't Believe It's Not Butter, which was renamed I Can't Believe It's so Good for Everything, and Stork, were all down too" Campaign Live reported."
With such news travelling throughout the industry, the share price was inevitably impacted. Shedding 0.28 percent to 4,040.00p, the business certainly underperformed, with the benchmark FTSE 100 adding 9.01 points to end the session.
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