Bloomberg: Unilever Gives the Go-Ahead to Sell Tea Division
Food group Unilever has given the go-ahead for the sale of large parts of its tea division. Sources tell Bloomberg news agency that the company has contacted potential buyers of the part.
The division, which includes brands such as Lipton and Pukka, should generate approximately 4 billion pounds.
Unilever would expect the first bids next month, according to the insiders. In addition, it is not yet certain whether Unilever will actually get rid of the tea branch. The company also said it was considering an IPO.
In July last year, the food group already announced that it wanted to split off the majority of the tea division because it is not making enough money. The sale process does not cover the tea divisions in India and Indonesia. Unilever’s partnerships in the field of ready-to-drink tea drinks are also not included in any deal.
Tea demand has suffered in recent years from a shift from tea to artisanal coffee. As a result, Unilever is trying to reshape its portfolio as consumer tastes change.
The activities that will be divested last year accounted for a turnover of around 2 billion pounds. A Unilever spokesperson declined to comment.