Anglo-Dutch consumer goods giant, Unilever, has acquired the holding company of Graze, UK’s leading snacking brand, as Alan Jope, Unilever’s Chief Executive Officer (CEO), moves to fast-track growth.
The company made this disclosure on Wednesday stating that the acquisition is expected to improve the value of the Unilever brand.
Fending off competition from the likes of Kellogg’s and PepsiCo, Unilever reportedly secured the deal for about £150 million, although the initial tag set by Carlyle- the erstwhile owners- was twice the price finally agreed upon, according to sources.
“Accelerating our presence in healthy foods and out of home this is an excellent strategic fit for the Unilever Food & Refreshment business, and a wonderful addition to our stable of purpose-driven brands,‘’ the notice stated.
Late 2018, Unilever replaced CEO Paul Polman with Alan Jope-a digital savvy, after Polman announced his retirement. The decision to elect Jope was informed by the brand’s strategy to improve sales through digital marketing especially for products targeted at the younger customers.
“We look forward to working with the Graze team to grow the business, leveraging their tech and e-commerce expertise for our wider portfolio, and offering more consumers the opportunity to snack in a healthier way,’’ Unilever stated in the notice.
Graze which was launched in 2008 grew into one of the leading Food and Beverages player in the UK by leveraging on technology. For instance, the former Carlyle owned firm utilizes an algorithm called ‘’Decision Algorithm Rating What Ingredients’ Next ‘’ or DARWIN which allows for the customization of customers snack boxes based on preferences subscribers indicate on the site.
Concerning the acquisition, Anthony Fletcher, Graze CEO expressed optimism on the impact of the change of ownership on Graze.
“Graze has an incredibly exciting future ahead as part of Unilever and we look forward to working closely with the team to keep on inventing new healthy snacks, as well as continuing to work to understand the role technology can play in improving the food industry.”
Following the disclosure, shares of Unilever rose by 3 percent on the London Stock Exchange, Tuesday, although it declined by 1.22 percent Wednesday.
Unilever PLC operates in the fast-moving consumer goods industry worldwide. It operates through Personal Care, Home Care, Foods, and Refreshment segments. The Personal Care segment offers skin care and hair care products, deodorants, and oral care products. The Home Care segment provides home care products, including powders, liquids and capsules, soap bars, and various cleaning products. The Foods segment offers soups, bouillons, sauces, snacks, mayonnaise, salad dressings, and margarines and spreads. The Refreshment segment provides ice creams and tea-based beverages. The company was founded in 1885 and is headquartered in London, the United Kingdom with subsidiaries in different countries including Nigeria.
SEGUN ADAMS
