GlobalData Plc
  • Press Release

    Continued evolution of product portfolio is crucial for Unilever to return to pricing growth

Tagged:

Following today’s release of Unilever’s Q2 2018 results,

Ronan Stafford, Lead Analyst at GlobalData, a leading data and analytics company, comments:

‘‘Unilever’s second quarter results indicating strong volume growth, but weak pricing growth, shows how the company needs to keep evolving its brand portfolio to increase its exposure to premium personal care categories and emerging markets.
”Building brands with purpose will be key to long-term pricing growth.

”Unilever’s sale of the spreads business to KKR, completed in July 2018, and heavy M&A activity with 24 new deals signed since the start of 2015, show that Unilever’s product portfolio is in flux. However, initiatives such as the New Vision Fund, backing women of color entrepreneurs, offer a strong route forward.
”Price competition will stay strong in most developed economies in the coming years, and is a major threat facing Unilever. This will be driven by the continued strength of discounters, strategic alliances in supply chains between large players such as Tesco and Carrefour, and disruption from online players such as Amazon, and direct to consumer sites like Dollar Shave Club, which Unilever acquired in 2016.
”Unilever’s growth in the first half of the year has been almost entirely volume dependent. Underlying volume growth (excluding spreads) reached 2.5%, compared with underlying sales growth (excluding spreads) of 2.7%.

”Currency fluctuations and supply chain disruptions in Brazil dampened pricing growth and while these disruptions will likely ease over the coming months, long-term pricing growth will come from Unilever’s continued efforts to evolve its product offering.”

Related Intelligence

Want more Insight like this?

Our interactive subscription platform has the most comprehensive data and analysis in your industry.

Request a Demo

Related Consulting

How can we help your business?

Our consultants are skilled in every specialist market niche to deliver solutions specifically designed for your individual requirements.

Request a Callback

Media Enquiries

If you are a member of the press or media and require any further information, please get in touch, as we’re very happy to help.

Emailpr@globaldata.com
PhoneEMEA: +44 207 832 4399
PhoneAPAC: +91 40 6616 6809
Onlinecontact online

56% of #consumers are concerned about the impact of diet. Join us for more insight @incosmetics #cosmetics #trends… https://t.co/wJOJOqYIJF