Unilever 2001 Annual Report Download - page 10

Unilever Annual Report & Accounts and Form 20-F 2001
ABOUT UNILEVER >7
Section 2Report of the Directors
Description of business
Unilever is one of the world’s leading suppliers of fast
moving consumer goods in foods, household care and
personal product categories.
Business structure
Since January 2001 our operations have been organised into
two global divisions – Foods and Home & Personal Care
(HPC) – headed by Division Directors. This structure allows
improved focus on foods and home and personal care
activities at both the regional and global levels. It allows
for faster decision making and strengthens our capacity
for innovation by more effectively integrating research
into the divisional structure.
These global divisions’ operations are organised into
businesses on a regional basis, with the exception
of DiverseyLever and Prestige within HPC and the global
businesses of Ice Cream and Frozen Foods and Foodservice
within the Foods Division. They are headed by Business
Presidents who are responsible for the profitability of their
regional and global businesses. These businesses remain the
driving force behind Unilever, comprising as they do the
operating companies which provide the key interface with
customers and consumers, allowing quick response to the
needs of local markets.
Foods
Oil and dairy based foods and bakery
We are the category leader in margarine and related spreads
in most countries in Europe and North America. We sell
spreads, oils and cooking fats in more than 100 countries.
Important brands in these markets are Becel (the
Netherlands), Flora (UK), Fruit d’Or (France), Rama
(Germany) and Country Crock and Take Control (US).
We are category leader in branded olive oil in many
countries in Western Europe and North America, our
most important international brand being Bertolli.
In July 2001 we sold the Bestfoods Baking Company to
George Weston Ltd for a debt free price of 1.9 billion.
Ice cream and beverages
We are the world’s leading producer of ice cream, with sales
in more than 90 countries worldwide. Important household
names are Algida, Langnese, Ola and Wall’s in Europe and
Ben & Jerry’s, Good Humor and Breyers in the United States.
Ice cream products such as Carte d’Or, Cornetto, Magnum,
Solero, and Viennetta are brands sold internationally as part
of local or international household brands.
We are the largest seller of packet tea in the world, with
important positions in packet tea and tea-related drinks in
many regions through our Lipton and Brooke Bond brands.
Lipton is the world’s leading brand in tea and iced tea.
Sales of ready-to-drink teas are growing throughout Europe,
North America and East Asia. We have a joint venture with
PepsiCo Inc., which markets ready-to-drink products in
North America and Mexico.
Culinary and frozen foods
As a result of our acquisition of Bestfoods in October 2000
we are the global leader in the Culinary category. Knorr is
now Unilever’s biggest brand, with well over 2.3 billion of
sales, in over 100 countries. Its product range covers soups,
bouillons, sauces, snacks, noodles and complete meals.
Hellmann’s is our third biggest foods brand and has market
leadership in mayonnaise in Brazil, the United Kingdom, the
United States and many other countries.
We have significant pasta sauce businesses in Mexico, North
America and the United Kingdom under the Ragú brand.
We also sell bouillons and other cooking aids in Europe,
North America, Australasia, Egypt and sub-Saharan Africa.
In the United Kingdom, Colman’s is a significant brand
in meal sauces and condiments and Amora and Maille
in France are important brands covering condiments,
mayonnaise and vinegar-based products which also have
sales in a number of European countries. Salad dressings,
spices and seasonings are marketed in the United States
under the Wishbone and Lawry’s brands.
In May 2001, following the approval of the European
Commission, we completed the sale of our dry soup and
sauces business in Europe to the Campbell Soup Company
for a debt free price of 1 billion. These included the
BlåBand brand in Denmark, Finland and Sweden, the
Batchelors brand in the United Kingdom, the McDonnels
brand in Ireland, the Oxo brand in Belgium, Ireland and the
United Kingdom, the Royco brand in Belgium, France and
Portugal and Bestfoods’ Lesieur range of mayonnaise
products in France. The businesses were divested as a
result of undertakings given to the European Commission in
connection with the acquisition of Bestfoods in October 2000.
We are the leading producer of frozen foods in Europe,
under the Findus brand in Italy, Birds Eye brand in the
United Kingdom and Iglo brand in most other European
countries. In October 2001 we completed the sale of our
North American seafood business, which comprised the
Gorton’s business in the United States and the BlueWater
business in Canada, to Nippon Suisan (USA), Inc. for
$175 million (198 million) in cash.
Home & Personal Care
Home care and professional cleaning
We are one of the global leaders in the domestic and
professional home care markets. In the home care sector
our products have been developed to meet the diverse
requirements of consumers to clean and care for their
homes and clothes. In laundry, they include tablets for
convenience, traditional powders and liquids for soaking,
washing by hand and by machine. In developing and
emerging markets, soap bars are available for lower income
consumers. In household care our products are designed to
tackle most cleaning and hygiene needs around the home.
Our home care brands are available in over 100 countries,
many of them holding leading market positions. Our home
care brands include, internationally, Omo, Surf, Skip, all,
Comfort, Wisk, Cif, Domestos and, in the UK, Persil.