Unilever ‘to sell’ spreads brands after review

The Marmite manufacturer revealed a comprehensive review of its operations following the failed £115bn takeover bid from Kraft Heinz. The review led to reports that Unilever could off-load some of its underperforming businesses – including Flora, Stork and Bertolli – when it publishes its findings next month.

No-one from Unilever was available to comment on the reports.

The union has written a letter to Unilever, urging it not to embark on drastic cost-cutting measures to boost profits, which could result in job cuts, reducing working conditions and pension reforms.

‘Botched takeover by Kraft Heinz’​

GMB national officer Eamon O’Hearn said: “Unilever has a proud history of treating workers with respect. We don’t want that to change just because of a botched takeover by Kraft Heinz. ​

“GMB members are worried the company will adopt a slash and burn approach in an ill-judged and short-sighted attempt to boost profits just to appease the market. We have written to investors urging them to make sure these fears are not realised.”​

The union letter was sent to 10 institutional investors. It said the union was concerned that Unilever would rely on counter-productive cost-cutting schemes to increase the manfuacturer’s value.

‘Spinning off its food division’​

The letter read: “Equally, ‘spinning off’ its food division or some sub-set would be likely to have a similar impact as experience shows us that incoming management teams frequently achieve efficiencies through cuts, not dynamic new management techniques.​

“GMB believes that Unilever’s long-term success and prestige of its brand has been inextricably linked to its status as a model employer and business, and GMB would not wish to see that undermined.”​

Last month, Unilever turned down a £115bn takeover bid​ from Kraft Heinz, after the US firm wanted to create a “leading consumer goods company”​. Unilever claimed it saw “no merit, either financial or strategic”​ in accepting the deal.