Unilever's tea business in other markets will be built as a separate entity going forward
The tea business that will be separated generated revenues of €2 billion in 2019
NEW DELHI :
Packaged consumer goods company Unilever on Thursday said it intends to retain its tea businesses in India and Indonesia, months after it announced a global a strategic review of the packaged tea business. Its tea business in other markets will be built as a separate entity going forward.
“In January Unilever announced a strategic review of its global tea business, which includes leading brands such as Lipton, Brooke Bond and PGTips. This review has assessed a full range of options. We will retain the tea businesses in India and Indonesia and the partnership interests in the ready-to-drink tea joint ventures," the Anglo-Dutch company said on Thursday when it also announced first half results for 2020.
The remainder of the tea business will be hived off into a separate entity.
“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 company said.
The tea business that will be separated generated revenues of €2 billion in 2019.
The news comes a few days after Hindustan Unilever Ltd., reported a stunning 51% quarterly jump in its foods and refreshments business in India as the lockdown prompted more households to buy its packaged coffee, tea and Kissan branded jams in the April to June quarter.
Its acquired Horlicks health foods drink brand grew well too during the quarter. Foods and refreshment revenue jumped 51.7% year-on-year, including GSK business, with nutrition, tea and coffee delivering good performance.
“Riding on the ‘In-home, wellness and immunity’ trends, Foods, Tea and Coffee delivered strong performance with double digit growths," HUL that sells Dove, Rin and Sunsilk brands in India said earlier this week. Its domestic nutrition business performed well, the company added.