Unilever announced in an investors meeting late last week a string of cuts, which will result in the culling of up to 40% of its products portfolio as well 2,000 job losses.
Jean-Marc Huët, finance director of the Anglo-Dutch company, told investors at a London conference on Thursday that it aimed to make savings by further reducing product lines, known as “stock keeping units,” and cutting stock levels, Reuters reported.
"The global economy has calibrated down about 1 to 1.5% 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 organization."
In October, Unilever posted slower sales growth for the third quarter.
Consumer goods companies are having to work harder to boost profits in the face of flat demand in austerity-hit Europe and a slowdown in emerging market growth. Polman said last week that the slowdown in emerging markets, on which the company depends for 57% of its sales, was here to stay.
"We lost our competitiveness," Polman said.
Unilever intends to save €500 million next year, after jobs cuts, by improving its supply chain and making various processes more efficient. Among the cuts are the shedding of 800 marketing jobs within its brands.
Last week, media reports said Ireland's Kerry Group was the leading bidder for Unilever's Peperami sausage business.
Recent deals include the divestments of Skippy peanut butter and Wishbone salad dressings.
© 2013 - European Supermarket Magazine by Enda Dowling
