GE 6102 Prelim ILP

2nd Trimester

SY 2019-2020

Name: Apolistar, Francis Niel S.

Section: ERCA

Instructor: Jasmin Bulanhagui

UNILEVER

Market Cap: $153.6B

Sales: $60.1B

Industry: Household/Personal Care

Founded: November 9, 1927

Founders: Lever Brothers, Margarine Unie

Number of Employees: 169,000

Headquarters: Rotterdam, Netherlands

Key People: Marjin Dekkers (Chairman)

Alan Jope (CEO)

Graeme Pitkethly (CFO)

Products: Beauty & Personal Care, Food, & Refreshments,

Cleaning Products

Description

Unilever NV engages in the production and marketing of consumer goods

in the nutrition, hygiene, and personal care categories. It operates through the
following segments: Personal Care, Foods, Refreshment and Home Care. The
Personal Care segment covers the sales of skin and hair care products,
deodorants and oral care products. The Foods segment includes the sales of
soups, bouillons, sauces, snacks, mayonnaise, salad dressings, margarines and
spreads. The Refreshment segment sells ice cream, tea-based beverages,
weight-management products and nutritionally enhanced staples sold in
developing markets. The Home Care segment is in charge of the sales of home
care products, such as powders, liquids and capsules, soap bars and a wide
range of cleaning products. The company was founded on November 9, 1927
and is headquartered in Rotterdam, the Netherlands.
History

1870’s – 1910
In 1872, Antoon Jurgens, founded the first margarine factory in the world
in Oss, Netherlands. Then, in 1888, Samuel van den Bergh, also from Oss,
opened his margarine factory in Kleve. These two companies merged in 1927 to
form Margarine Unie.
The initial harvesting of palm oil was from British West Africa, from where
news reports seen back in England showed the workers abroad in favorable
conditions. In 1911, the company received a concession for 750,000 hectares
(1,900,000 acres) of forest in Belgian Congo, mostly south of Bandundu, where it
operated through a subsidiary named Huileries du Congo Belge that used forced
labor.

1920’s – 1940
In 1925, Lever Brothers acquired Mac Fisheries, owner of T. Wall & Sons.
In September 1929, Unilever was formed by a merger of the operations of
Dutch Margarine Unie and British soapmaker Lever Brothers, with the name of
the resulting company a portmanteau of the name of both companies.
In the 1930s, business grew and new ventures were launched in Africa
and Latin America. The Nazi occupation of Europe during the Second World War
meant that Unilever was unable to reinvest its capital into Europe, so it instead
acquired new businesses in the UK and the US. In 1943, it acquired T. J. Lipton,
a majority stake in Frosted Foods (owner of the Birds Eye brand) and Batchelors
Peas, one of the largest vegetable canners in the UK. In 1944, Pepsodent was
acquired.
After 1945 Unilever's once successful American businesses (Lever
Brothers and T.J. Lipton) began to decline. As a result, Unilever began to operate
a "hands off" policy towards the subsidiaries, and left American management to
its own devices.
1950’s – 1960
Sunsilk was first launched in the UK in 1954. Dove was first launched in
the US in 1957. Unilever took full ownership of Frosted Foods in 1957, which it
renamed Birds Eye. The US-based Good Humor ice cream business was
acquired in 1961.By the mid-1960s laundry soap and edible fats still contributed
around half of Unilever's corporate profits. However, a stagnant market for yellow
fats and increasing competition in detergents and soaps from Procter &
Gamble forced Unilever to diversify. In 1971, Unilever acquired the British-
based Lipton Ltd from Allied Suppliers. In 1978, National Starch was acquired
for $487 million, marking the largest ever foreign-acquisition of a US company at
that point.
1970’s – 1980
By the end of the 1970s through acquisitions, Unilever had gained 30
percent of the Western European ice cream market. In 1982, Unilever
management decided to reposition itself from an unwieldy conglomerate to a
more concentrated FMCG company.
In 1984, Unilever acquired Brooke Bond (maker of PG Tips tea) for £390
million in the company's first successful hostile takeover. In 1986 Unilever
strengthened its position in the world skin care market by acquiring
Chesebrough-Ponds (merged from Chesebrough Manufacturing and Pond's
Creams), the maker of Ragú, Pond's, Aqua-Net, Cutex, and Vaseline in another
hostile takeover. In 1989, Unilever bought Calvin Klein Cosmetics, Fabergé,
and Elizabeth Arden, but the latter was later sold (in 2000) to FFI Fragrances.
1990’s
In 1993, Unilever acquired Breyers from Kraft, which made the company
the largest ice cream manufacturer in the United States.
In 1996, Unilever merged Elida Gibbs and Lever Brothers in its UK
operations. It also purchased Helene Curtis, significantly expanding its presence
in the United States shampoo and deodorant market. The purchase brought
Unilever the Suave and Finesse hair-care product brands and Degree deodorant
brand.
In 1997, Unilever sold its specialty chemicals division, including National
Starch & Chemical, Quest, Unichema and Crosfield to Imperial Chemical
Industries for £4.9 billion.
2000’s
In April 2000, Unilever bought both Ben & Jerry's and Slim Fast for £1.63
billion. Later that year, the company acquired Best Foods for £13.4 billion. The
Bestfoods acquisition increased Unilever's scale in foods in America, and added
brands such as Knorr, Marmite, Bovril and Hellmann's to its portfolio.
In 2001, Unilever split into two divisions: one for Foods and one for Home
and Personal Care.
In September 2002, the company sold its specialty oils and fats division,
Loders Croklaan, for RM814 million (€218.5 million) to IOI Corporation, a Kuala
Lumpur, Malaysia-based oil palm company. As part of the deal, the Loders
Croklaan brand will be maintained.
In 2004 Unilever sold its share in Rushdi food industry to the Bashir family which
started to use the Baracke brand name.
In May 2007 Unilever became the first large-scale company to commit to
sourcing all its tea in a sustainable manner,
In September 2009 Unilever agreed to acquire the personal care business
of Sara Lee Corporation, including brands such as Radox, Badedas and
Duschdas, strengthening its category leadership in skin cleansing and
deodorants.
2010 - 2014
In August 2010, Unilever signed an asset purchase agreement with the
Norwegian dairy group TINE, to acquire the activities of Diplom-Is in Denmark.
In September 2010, Unilever announced that it had entered into a
definitive agreement to sell its consumer tomato products business in Brazil
to Cargill.
In February 2011, Unilever announced that it will switch to 100% cage-free
eggs for all products it produces worldwide
In March 2011, it was announced that Unilever had entered into a binding
agreement to sell the Sanex brand to Colgate-Palmolive for €672 million, and
that Unilever would acquire Colgate-Palmolive's laundry detergent brands in
Colombia (Fab, Lavomatic and Vel) for US$215 million.
In April 2011, Unilever was fined €104 million by the European
Commission for establishing a price-fixing cartel in Europe along with P&G, who
was fined €211.2 million, and Henkel (not fined). Though the fine was set higher
at first, it was discounted by 10% after Unilever and P&G admitted running the
cartel. As the provider of the tip-off leading to investigations, Henkel was not
fined.
In January 2013, Unilever agreed to sell the Skippy peanut butter brand,
together with related manufacturing facilities in Little Rock, Arkansas, United
States and Weifang, Shandong, China, to Hormel Foods for approximately $700
million (£433 million, or approximately €540 million) in cash.
On 22 December 2014, Unilever announced the purchase of
the Camay brand globally and the Zest brand outside of North America and the
Caribbean from Procter & Gamble.
2015
In March 2015, Unilever confirmed it had reached an agreement to
acquire REN Skincare, a British niche skincare brand.
 In July 2015, the company separated its food spreads business, including
its Flora and I Can't Believe It's Not Butter! Brands, into a standalone entity
named Unilever Baking, Cooking and Spreading.
In October 2015, Unilever agreed to acquire the Italian premium ice cream
maker GROM for an undisclosed amount.
2016 – Present
In July 2016, Unilever bought the US start-up Dollar Shave Club for a
reported $1b (£764m) in order to compete in the male grooming market.
On 17 February 2017, significantly smaller Kraft Heinz made a $143 billion
bid for Unilever.
In September 2017, Unilever acquired Weis, an Australian ice cream
business. Later that month Unilever acquired Remgro’s interest in Unilever South
Africa in exchange for the Unilever South Africa spreads business plus cash
consideration.
In March 2018, the company announced that its headquarters will be
moved completely to Rotterdam, ending its dual Anglo-Dutch structure.
In 2018, UK recruitment website Indeed named Unilever as the UK's ninth
best private sector employer based on millions of employee ratings and reviews.
Unilever acquired the snack company Graze in February 2019.
Logo
In 1930, the logo of Unilever was in a sans-serif typeface and all-caps.
The current Unilever corporate logo was introduced in 2004 and was designed
by Wolff Olins, a brand consultancy agency. The 'U' shape is now made up of 25
distinct symbols, each icon representing one of the company's sub-brands or its
corporate values.
Operations
Unilever is organized into four main divisions: Personal Care (production
and sale of skin care and hair care products, deodorants and oral care products);
Foods (production and sale of soups, bouillons, sauces, snacks, mayonnaise,
salad dressings, margarines and spreads); Refreshment (production and sale of
ice cream, tea-based beverages, weight-management products and nutritionally
enhanced staples sold in developing markets); and Home Care (production and
sale of home care products including powders, liquids and capsules, soap bars
and other cleaning products).
Unilever is one of the largest media buyers in the world, and invested
around €6 billion (US$8 billion) in advertising and promotion in 2010.
 Unilever R&D Centre in Unilever R&D Centre in

Bangalore, India Colworth, UK

Unilver R&D Centre in Port Unilever-Haus in

Sunlight, UK Hamburg, Germany