![]() ![]() To succeed in the long term, Unilever will need to adapt its business model, becoming more agile and responsive to changing trends.”Īside from price rises, big food makers have also angered consumers by shrinking products while keeping prices the same, in a move nicknamed shrinkflation. “Unilever has responded by cutting costs and raising prices – however, these are short-term fixes. ![]() In recent months it has snapped up Pukka Herbs tea in the UK, Mãe Terra organic food in Brazil, the family-owned ice-cream maker Weis in Australia and the fast-growing skincare brand Carver in South Korea.Ĭharlie Huggins, a fund manager at Hargreaves Lansdown Select, which holds Unilever shares, said: “Life is becoming more difficult for the consumer goods giants, as competition from smaller, nimbler players intensifies and consumer preferences shift towards niche and alternative brands. Unilever is trying to fight back with a series of acquisitions. Independent health brands such as Kind, Clif, Kashi and Quest energy bars, Bear Naked cereal and snacks, Siggi’s Icelandic-style yogurt and the organic vegetarian food range Amy’s Kitchen have proliferated, with entrepreneurs tapping into changing consumer tastes toward fresh, healthy and local food. It said advertising and distributing products had become much easier. ![]() Big brands still dominate, accounting for 80% of food sales, but smaller brands have gained market share in 62% of the top 50 packaged food categories, according to a recent study from Condé Nast and Goldman Sachs. GENERAL MILLS, INC.Unilever’s ice-cream brands have been losing ground to Halo Top ice-cream.īig consumer groups have come under pressure from smaller health food brands, which are popular with millennials. Investors target consumer goods makers on fears of customer exodus over high prices What is aspartame and what do the new WHO rulings on cancer and consumption mean? North American Morning Briefing: Disappointing -2-Īrgus Research Upgrades General Mills to Buy Rating From Hold, Price Target is $90 (Reporting by Lauren Hirsch in New York Editing by Matthew Lewis)Ĭonservative activist behind US affirmative action cases sues venture capital fund However, Eden Creamery has also had to defend its use of artificial sweeteners in its ice cream, which critics say makes the food a less than healthy option.Įden Creamery said in January that Halo Top sales had surpassed Ben & Jerry's and Häagen-Dazs, making it the best-selling ice cream by the pint in the United States. Its ice creams, which come in flavors like sea salt caramel and pancake and waffles, are marketed as low-calorie and low-sugar. General Mills Inc ( > General Mills, Inc.) and Nestle SA's ( > Nestlé)'s Häagen-Dazs, for example, which describes itself as "premium ice cream made with only the highest quality ingredients," recently launched a new marketing campaign and has come out with limited edition flavors such as Hana Mochi.Įden Creamery was founded by former Latham & Watkins LLP lawyer Justin Woolverton. As a result, companies that own some of the largest ice cream brands have been doubling down on their premium offerings. Still, the fastest-growing ice cream brands are the "premium" ones - the pricier and more calorie-leaden varieties that appeal to consumers looking to splurge. ice cream industry's roughly $8.2 billion revenue in 2017, according to data provider IBIS World. Low-fat and nonfat varieties of ice cream are expected to make up 10.4 percent of the U.S. There is no certainty Eden Creamery will agree to any deal, the sources added.Įden Creamery did not immediately respond to requests for comment and Barclays declined to comment.Īs sales of ice cream have slowed over the past five years, upstart healthy brands such as Halo have gained market share by appealing to an increasing number of waistline-conscious consumers. Los Angeles-based Eden Creamery is working with investment bank Barclays Plc ( > Barclays) to prepare to run a sale process for the company, said the sources, who requested anonymity because the deliberations are confidential. Unilever Plc ( > Unilever), for example, acquired Talenti Gelato & Sorbetto, a lower-fat gelato and sorbet company, in 2014. Eden Creamery is hoping to capitalize on the appetite of big food companies for premium and healthy ice cream brands, the sources said. ![]()
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