Unilever looks to innovation after sales dip in Europe
Unilever is to place a new focus on innovation after it reported a 0.8 per cent fall in sales in Europe, which it blamed on “volatile” consumer confidence and pricing competition from discount retailers.
The consumer goods giant admitted its markets have been “challenging” and it has experienced a further slow-down in emerging countries.
In a conference call to investors this morning chief executive Paul Polman said innovation would be key at Unilever.
“We are continuing to focus on innovation, portfolio reshaping and driving efficiency, doing the right things to adapt to a world that is increasingly volatile and unpredictable,” he explained.
The company credited innovations such as Ben & Jerry’s Cores, compressed deodorants in Europe, and a new toothpaste brand Regenerate with driving underlying sales growth by 3.7 per cent in the first half.
Emerging markets grew 6.6 per cent with price up 4.4 per cent and volume growth of 2.1 per cent.
Polman said that sales in the UK were up slightly, with the technology used in premium oral brand Regenerate – which retails at £10 – allowing Unilever to “differentiate from the competition”.
Overall, Unilever said its ice-cream sector performed strongly in the quarter, driven by a programme of activates around the Magnum 25th anniversary, the launch of Magnum Infinity in the United States and Indonesia, and the launch of Magnum Mini in Brazil.
Ben & Jerry’s growth was supported by innovations such as Cores and the introduction of a mini cup format in Japan, whilst Cornetto responded well to re-launches in North Asia and Europe.
Unilever continued to invest in marketing across the business – up by 10 basis points – particularly in emerging markets, despite revealing that marketing spend was down in Europe, where the company is focussing on its digital channels.