Unilever To Update Shareholders On N1.1trn Tea Business

Unilever Nigeria Plc has notified its shareholders on the  planned separation of its  N1.1trn (€2bn) tea business across its different markets.

The parent company- Unilever global company had announced its results for the first half of 2020, which show that overall underlying sales declined 0.1 per cent with developed markets up 2.4 per cent and emerging markets down 1.9 per cent.

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Following declining sales of traditional black tea in developed markets as consumers shift toward herbal tea, the company however planned to separate its tea business from the core Unilever business.

Black tea comprises the majority of Unilever’s global tea business.

Brands to be included in the divestment include Tazo, Pukka Herbs, T2 and others. Unilever acquired the Tazo brand from Starbucks Corp. in 2017 for $384m, while early 202, the company purchased Pukka Herbs Ltd. 

The Nigeria subsidiary said on Wednesday it was notifying, “The Nigerian Stock Exchange and  esteemed shareholders of the recent global announcement by Unilever on the Strategic Review and planned separation of its Tea business.”

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The Nigerian Subsidiary added, “We shall keep the Nigerian Stock Exchange informed of any subsequent development on this matter as it affects Unilever Nigeria Plc.”

Ths  British-Dutch multinational company had in July taken action to strengthen the strategic future of the company by announcing proposals to unify our dual-headed legal structure.

The company said it was progressing the strategic review of its global tea business and making new commitments to help protect the climate and regenerate nature.

Unilever global, first made the move in January when it  announced a strategic review of the global tea business, which includes leading brands such as Lipton, Brooke Bond and PG Tips.

The company said it would retain the tea businesses in India and Indonesia, and the partnership interests it has  in the ready-to-drink tea joint ventures.

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Unilever had said, “The balance of Unilever’s tea brands and geographies and all tea estates have an exciting future, and this potential can best be achieved as a separate entity.

“A process will now begin to implement the separation, which is expected to conclude by the end of 2021.”

The tea business that would be separated generated total revenues of €2bn in 2019.

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