The Magnum’s producer has revealed it will be parting ways with its brands Unox and Zwan which have been part of the Unilever portfolio for almost 100 years. The Dutch Unox brand since 1937 and the Belgium Zwan brand since 1928.
With 1,800 employees and a turnover of €600m, Zwanenberg is one of the leading European producers and exporters of meats, preserved meat, snacks, soups, sauces, vegetarian and vegan products.
The deal comes as Unilever looks to sharpen its foods portfolio, as it sets it sights on long-term growth and scalability. The business says it is focusing on fewer and bigger brands in categories such as cooking aids, mini meals and condiments.
The meat and soup products of Unox and Zwan require a distinct supply chain, sourcing model and set of technological and R&D capabilities, making them less scalable within the broader Unilever Foods portfolio.
The business added that Unox’s Noodles and Cup-a-Soup products are a good fit with the mini meals category and will therefore remain part of the total Unilever Foods portfolio.
Commenting, Heiko Schipper, president Unilever Foods, said: “Unox is a beloved and iconic brand in the Netherlands and the decision to part with it has not been easy. The association with Dutch winter activities, such as the New Year’s Dive in Scheveningen and ice-skating events, along with its distinctive orange hat branding and wide range of award-winning advertising campaigns, has cemented Unox’s place in Dutch culture.
“Zwan is a cherished brand in Belgium, associated with comfort and nostalgia and with quick and easy meals, making the brand a beloved part of everyday Belgium life. I am convinced that under Zwanenberg Food Group’s ownership, Unox and Zwan will be able to quickly adapt to trends and remain relevant in this competitive market.”
Zwanenberg Food Group has been producing on behalf of both Unox and Zwan for a while and after the takeover of the Unilever factory in Oss in 2018, the Zwanenberg CEO has said it this acquisition is “a great addition that fits in perfectly” with its ambitions.
The deal includes the production of soup-in-pouch in the factory in Poznan and is expected to complete within 2025.
This follows hot on the heels of Unilever selling its Dutch Conimex brand, known for its range of meal makers, prawn crackers, soups, sauces, and seasonings, to international food and drink company Paulig.
This move represents a big move for Paulig as it looks to establish its presence in the Asian food category in the Netherlands.
The acquisition includes the Conimex brand and its associated business, encompassing all trademarks and related intellectual property
“We aim to shape a popular food culture, and with the acquisition of Conimex we want to make it easier for even more consumers to enjoy cooking Asian food at home. This acquisition establishes our position in the Asian category in the Netherlands. It also allows us to combine portfolio and concept development, leveraging Paulig’s strong R&D and production capabilities to grow our World Foods portfolio in Europe,” said Rolf Ladau, CEO of Paulig.
Conimex was founded in 1932 in Baarn, Netherlands, and has grown significantly over the years, expanding its product line to more than 100 items.
This follows Paulig acquisition in Autumn of Panesar Foods, a UK-based manufacturer of sauces, salsas and condiments. Paulig will now leverage Panesar Foods’ production capabilities to boost the growth of both Conimex and Santa Maria brands in Europe.
Speaking with M&A expert and corporate finance director for Rollits, Julian Wild, he said it’s clear that Unilever want to focus their efforts and future investment on global brands which fit with their overall Group strategy.
“Although Unox and Zwan are well-known, long-established businesses within their domestic markets in Holland and Belgium respectively, they are not international brands which Unilever can grow.
“I am sure they will get better attention under the Zwanenberg umbrella. The same applies to Paulig acquiring Conimex.”
He continued: “Unilever announced that it was spinning off Ben & Jerry’s and other ice cream brands such as Cornetto and Magnum last March. I assume that process is on-going.
“It was stated at the time that Unilever wanted to focus on ‘superior brands with strong positions in highly attractive categories that have complementary operating models’. The relationship between Unilever and Ben & Jerry’s has been fractious for some time and has spilled over latterly in relation to the situation in Gaza. I suspect that Unilever management find Ben & Jerry’s ethical stance on various issues too problematic.”
