Unilever 2000 Annual Report Download - page 7

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Unilever Annual Report & Accounts and Form 20-F 2000 Report of the Directors
About Unilever
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
During the year ended 31 December 2000, Unilever was
organised, and its internal results were reported, on both
a product and a regional basis.
On a product basis, Category Directors w ere responsible
for developing category strategies for implementation
across Unilever’s operations and they worked closely with
Business Groups to develop regional strategies. They were
also responsible for directing and managing the allocation
of corporate resources for research and development
and the innovation network.
On a regional basis, Unilever’s operations were organised
into 12 Business Groups. These were regionally based with
the exception of DiverseyLever, a worldw ide grouping of
professional cleaning products and services. Western
Europe and North America were further sub-divided by
Foods and Home & Personal Care product categories.
The individual operating companies, which formed the
core building blocks of the Unilever organisation, came
within the Business Groups. The President of each Business
Group was accountable for the performance of the
companies in his group.
In August 2000, Unilever announced an evolution of its
top management structure, creating tw o global divisions –
one for Foods and one for Home & Personal Care (HPC),
with effect from 1 January 2001.
These global divisions’ operations are organised into
Business Groups 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.
Foods
Oil and Dairy Based Foods We are the global 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.
In Western Europe and North America, consumer interest
remains strong in spreads offering qualities related to
‘health’ and ‘taste’, although overall consumption in the
sector is declining. 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 is Bertolli.
We sold our European Bakery Supplies Business in the
second half of the year and on 19 February 2001 we
announced an agreement to sell the Bestfoods baking
business for a debt free price of 1.9 billion. The
sale is subject to customary conditions, including
regulatory approval.
Ice cream and beverages We are the w orld’s leading
producer of ice cream, w ith sales in more than
90 countries worldw ide. Important household names
are Wall’s, Langnese, Ola and Algida in Europe and
Ben & Jerry’s, (acquired in 2000), Good Humor and Breyers
in the United States. Ice cream products such as Magnum,
Solero, Cornetto, Carte d’Or and Viennetta are brands
sold internationally as part of local or international
household brands.
We have important positions in packet tea and tea-related
drinks in many regions through our Lipton and Brooke
Bond brands. Lipton is the w orld’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 We are the leading producer of
frozen foods in Europe, under the Birds Eye brand in the
United Kingdom and Iglo brand in most other European
countries. We also market frozen seafood in the United
States under the Gorton’s brand.
We have a significant pasta sauce business 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 the acquisition
of Amora Maille in France added important brands
covering condiments, mayonnaise and vinegar-based
products with 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.
The acquisition of Bestfoods in October 2000 has
significantly strengthened our position in the culinary
category by adding major international brands such as
Knorr and Hellmann’s and a strong global foodservice
business. In addition, the acquisition of Slim•Fast Foods
in M ay 2000 has enhanced our functional food products
range, primarily in the United States.
On 29 January 2001 we announced an agreement to sell
our dry soup and sauces business in Europe for a debt free
price of 1 billion. These include the Blå Band brand in
Denmark, Finland and Sw eden, 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