Acquisitions of Unilever in the end of 2017 and beginning of 2018.
Acquisitions of Unilever: Great end of 2017 | Perfect beginning of 2018.
Unilever – An international giant with the ownership of over 400 brands in various FMCG segments of the market has a strong appetite for an expansion. Unilever as well as other corporations that focus on consumer goods market (such as P&G, Henkel, Coty and so on) is famous for bold moves and acquisitions. According to Wikipedia in 2016 Unilever’s turnover exceeded 50 billion Euros and 13 most profitable Unilever’s brands reached 1 billion Euros in sales / each. An extraordinary performance of several brands (Axe/Lynx, Lux, Omo, Becel/Flora, Dove, Heartbrand, Surf, Rexona/Degree, Hellmann’s, Lipton, Magnum, Rama, Sunsilk and Knorr.) has shown that Unilever’s strategy of allocating resources in variety of FMCG segments – simply pays off. It might be also the reason why acquisitions of Unilever are being seen so frequent in recent years. In 2017 Unilever accomplished several acquisitions from cosmetic field. It acquired Carver Korea (beginning of December 2017) Sundial (mid of December 2017 )and Schmidt’s Naturals ( first days of January 2018). Cosmetic Industry News prepared a list of latest acquisitions of Unilever which happened on last quarter of 2017 and beginning of 2018 in food and beverage FMCG segments.
December take over of Mãe Terra | 1 December 2017
With the beginning of December 2017 Unilever enlarged it’s portfolio of brands on FMCG market. This time – further to announcement which was made on 2nd October 2017 – Unilever successfully acquired Brazilian organic food business for an undisclosed amount. It was one of three acquisitions of Unilever made within one month – December 2017.
Mãe Terra with headquarters in São Paulo is considered as fast growing brand addressed to Brazilian health conscious clientèle. In they offer there are several categories of food such as: culinary products, cereals, snacks and cookies with an estimated growth of 30% on year to year basics. Unilever’s interests in expanding it’s portfolio of healthy food products come along with global trends for organic food preferences. Brazil seems to be the 5th largest market in category of healthy food products with over 70% customers declaring healthy food factor as a major decisive component while choosing food product. Both Fernando Fernandez – president of Unilever Brazil and Mãe Terra CEO Alexandre Borges – agreed that transaction is a great chance to “accelerate” delivering organic food to bigger amount of people in Brazil.
Unilever completes an aquisition of Tazo on 11th December 2017.
Although Unilever’strategy to acquire various companies in promising market segments is well know, completing acquisition of Tazo electrified FMCG field. It happened because $384 million deal with Tazo, is just one of several acquisitions of Unilever be seen in last 2 months. Tazo is Canadian based tea manufacturing & distributing firm which describes it self as “The Reincarnation of Tea”. Founder of Tazo – Mr. Steven Smith started to build his tea empire in 1994 by incorporating Tazo. In 1999 Starbucks acquired Tazo for $8.1 Million just after 5 years of existence of this tea manufacturing firm. November 2012 was another significant period of time for Tazo brand, due to completion of opening the first Tazo tea store. From that moment Tazos’s popularity in North American market was steadily growing.
Unilever’s tea brands portfolio.
Tazo is not the first premium tea brand in Unilever’s portfolio. Some of the major Unilever’s tea brands include:
- Lipton – founded in 1938 by Thomas Lipton, from 1978 run by 2 jointly own companies: PepsiCo and Unilever.
- Brooke Bond – Uk based tea making company owned by Unilever since 1984.
- Bushells – Unilevers tea brand based in Australia bought in 1998.
- Choysa – Tea manufacturing firm with target market in New Zealand.
- Lyons – Unilever’s tea brand in Ireland acquired in 1996.
- PG Tips and Scottish Blend – are two popular brands of tea in Scotland owned by Unilever.
- T2 Tea – Australian based tea firm acquired by Unilever.
- Saga tea – Brand of tea distributed in Poland.
As it’s easy to notice acquisitions of Unilever are crucial in Unilever’s strategy for expansions on new markets. however in some cases (Saga Tea for instance) Unilever creates it’s own brand from a scratch. In this case Unilever allocates resources to position it’s brand on a local market in order to achieve dominance in target segment. Nevertheless acquisition of Tazo enlarges Unilever’s market share of tea products targeted in North American countries.
Acquisitions of Unilever: Sundial and Schmidt’s Naturals.
After a purchase of Tazo and Mãe Terra with their brands, Unilever expanded it’s market by acquiring Sundial, Carver Korea and Schmidt’s Naturals. All of the companies are focusing on producing cosmetic product that in opinion of Unilever leaders match Unilevers profile and have potential to accelerate Unilever’s dominance in particular cosmetic categories.