Unilever streamlines products, cuts jobs

CEO says hit by slowdown; CFO says some food brands will be sold

Consumer products giant Unilever Plc aims to cut the number of individual products it sells by 30 per cent by the end of 2014 to become more efficient and navigate a global economic slowdown it admits it was slow to confront.

The Anglo-Dutch maker of Ben & Jerry's ice cream, Lipton tea and Dove soap also said on Thursday it is cutting about 2,000 jobs and will continue to adjust its portfolio.

"The global economy has calibrated down about 1-1.5 per cent and we probably should've done a better job seeing it coming," said Unilever Chief Executive Officer Paul Polman in a presentation in London that was broadcast over the internet. "We're using that opportunity to step up the performance and drive new energy into the organisation."

In October, Unilever posted slower sales growth for the third quarter after demand was hurt by the devaluation of some emerging market currencies and aggressive promotions in the United States by rival Procter & Gamble Co. "We lost our competitiveness," Polman said.

Unilever intends to save ^500 million next year, after cutting about 2,000 jobs this year, improving its supply chain and making various processes more efficient. The company is shifting more of its focus to its larger brands, including the 15 that each generate over ^1 billion in annual revenue.

Polman said it will continue to sell non-core, underperforming brands and buy attractive bolt-on brands when possible. "The overall portfolio is perhaps not as robust yet as some of our competitors, but you have to deal with the deck of cards you've been given," Polman said.

Chief Financial Officer Jean-Marc Huet said most brands to be sold will be from Unilever's food business, which includes Knorr soups and Hellmann's mayonnaise, rather than the personal care side, which makes Radox soaps, Lux shampoo and Vaseline.

"We are taking the bull by the horns," said Antoine de Saint-Affrique, president of Unilever's food business. "We are seeing green shoots...but it's going to be a long-term journey."

He declined to say whether there was a deadline for turning around the business, or quantify the size of its current sales declines. Unilever has launched new margarine products in Germany, the United States and Britain that highlight naturalness and healthiness.