Dive Brief:
- Unilever credits the waste-reducing squeeze bottle for part of the recent successes of its Hellmann's mayonnaise brand, which saw a 7% sales boost in 2015 (in addition to the brand's switch to 100% cage-free eggs).
- Hellmann's success stands in contrast to the mayo industry as a whole, which saw U.S. sales dip 1.5% and global sales drop more than 9% in 2014, according to Euromonitor.
- Unilever has also had to contend with competitors like Hampton Creek's egg-less Just Mayo. Unilever had filed a lawsuit against Hampton Creek in November 2014 but later dropped the suit.
Dive Insight:
U.S. consumers tend to waste about 1,000 pounds of mayonnaise annually because they can't reach all of the mayo in the containers, according to Unilever. Unilever's squeeze bottle, which other mayo producers also use, aims to remedy that issue.
But the squeeze bottle has more benefits than just reducing waste: the company charges more for the 20-ounce squeeze bottle than a 30-ounce jar.
In addition to Hellmann's, other segments have been performing well for Unilever, such as ice cream, particularly its premium products like Ben & Jerry's. The refreshments category, which includes ice cream, jumped 8.5% last quarter.
Not all segments have been as successful. With Unilever reporting its margarine segment's falling sales and the recent announcement of its margarine CEO's exit, speculation has arisen once again that the company could sell off the underperforming spreads business, according to The Wall Street Journal.