New CEO Hein Schumacher has vowed to focus on the 30 core brands that account for the majority of his sales. Photo: UNILEVER/FRIESLANDCAMPINA /REUTERS
Unilever is selling several of its cosmetics brands as pressure mounts on the maker of Dove and Marmite over its poor performance.
The company said it has agreed to sell its Elida Beauty subsidiary, which includes 20 brands such as Q Tips and Timotei, to US private equity firm Yellow Wood Partners for an undisclosed sum.
The offer to sell Arm would be seen as Unilever's attempt to address the fact that its business has become too unfocused. It owns more than 400 brands worldwide, including Knorr, Bovril and Ben & Jerry's.
New CEO Hein Schumacher earlier this year pledged to focus on the 30 core brands that account for the majority of the company's sales.
The move is part of a wider shake-up amid pressure from investors over falling share prices and company strategy.
Unilever's share price has fallen steadily in recent years and is down more than 10% in the last twelve months.
Mr Schumacher took over the company in July after former boss Alan Jope resigned following a failed bid to buy GlaxoSmithKline's consumer business.
Since then, he has been fighting to restore confidence in the business. In October, Schumacher unveiled plans to reduce Unilever's focus on “social causes”, saying he would no longer seek to “forcefully align” brands with social causes.
This followed criticism from investors who argued that Unilever's high-profile approach to “social purpose” and ESG (environmental, social and governance)distracted the company from making a profit.
Fund manager Terry Smith, a director at Fundsmith, accused the company in 2022 of having “lost the plot” by trying to “define the purpose of Hellman's mayonnaise.”
The move to backtrack on the goals of all its brands comes amid questions over Unilever's ethical credentials. Competition & Last week the Markets Authority (CMA) said it would scrutinize the environmental claims on Unilever product packaging amid concerns that consumers could be misled.
The watchdog said the claims and the language used to make promises about the environmental impact of its products was often vague and could be misleading, adding that claims about some ingredients were presented in a way “that may exaggerate how 'natural' a product is and thus , may create an inaccurate or misleading impression.”
Unilever said it was “surprised and disappointed by the CMA's statement” and that it rejected the idea that any of its statements were misleading.
Unilever also faced criticism for , which continued to sell products in Russia after Putin's invasion of Ukraine, and in July the Ukrainian government called him an “international war sponsor.”
They claim that this is “the best option to avoid the risk of our business falling into the hands of the Russian state, directly or indirectly, and help protect our people.” < /p>
Elida Beauty turnover in 2022 year amounted to about 800 million euros (689 million pounds sterling). The sale to Yellow Wood Partners is expected to close next year.
Said Fabian Garcia, president of Unilever Personal Care. : “Elida Beauty's portfolio includes iconic and classic beauty and personal care brands. I am confident that under new ownership they will continue to thrive and serve consumers throughout North America and Europe.”
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