Dive Summary:
- Unilever last week reported a 1% drop in sales for its food products during the first half of 2013, with spreads, and margarine in particular, not connecting with consumers the way they used to.
- Spreads make up 7% of the I Can't Believe It's Not Butter maker's sales, but growing health awareness, aversions to man-made fat and the increasing popularity of alternatives like the increasingly popular hummus are contributing to a decline in the margarine segment.
- The problem could, however, be a company problem since Euromonitor International reports that global margarine sales increased 1.1%—I Can't Believe It's Not Butter, by comparison, fell 3.9%—and Unilever plans to improve its products' taste and "healthy alternative to butter" marketing.
From the article:
... Unilever Chief Executive Paulus Gerardus Polman said during last week’s earnings call that turning around the spreads business requires more than competing on price. “It is about getting the right taste,” he explained. “And it is about the perceived naturalness of our products.” What Unilever sees as its “better-tasting products,” such as Becel Gold, are being introduced in more markets and “are doing well,” Polman said. ...