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🚨FOOD INDUSTRY NEWS🚨 Unilever has kicked off initial discussions with buyout firms about a possible sale of its ice cream business, which could be worth as much as £15 billion ($19.4 billion), according to people familiar with the matter. The consumer goods company has started holding management presentations with potential bidders. Private equity firms Advent International, Blackstone, Cinven and CVC Capital Partners Plc are among those that have shown preliminary interest.🍦 #manda #icecream #sale #foodindustry #newsletter

Unilever Said to Start Sale Talks for £15 Billion Ice Cream Unit: Unilever has initiated discussions with private equity firms about selling its ice cream business. Potential Buyers: Firms showing interest include Advent International, Blackstone, Cinven, CVC CAPITAL PARTNERS LIMITED, Clayton Dubilier & Rice, and KKR & Co. Timeline and Process: + Management presentations have started. + A formal sale process is expected to begin in the second half of the year. + Discussions are still in early stages. Unilever's Strategy: + Part of CEO Hein Schumacher's plan to drive growth and improve performance. + Includes separating the ice cream arm and cutting 7,500 jobs. Ice Cream Division Details: + 2023 sales: €7.9 billion + Profit margin is less than half of Unilever's personal care unit. + Includes brands like Ben & Jerry's and Magnum. Context and Motivation: + Follows appointment of activist investor Nelson Peltz to Unilever's board. + Aims to streamline portfolio and improve overall company performance. + Would remove controversies related to Ben & Jerry's political stances. Industry Trends: + Private equity firms are keen on acquiring assets from large corporations. + Similar deals are occurring in the consumer goods sector. Unilever's History of Divestments: Previously sold margarine and spreads business to KKR in 2017. Sold tea unit to CVC in 2021. This potential sale represents a significant move in Unilever's ongoing efforts to restructure and improve its business performance. #Growth #Restructuring #Divestment #PrivateEquity #Business #Investment #Performance #IceCream I Bloomberg News I Swetha Gopinath I Dinesh Nair

#Unilever will do "whatever it takes" to defend its #MarketLeadership in #India and won't hesitate to #invest "hundreds of millions" or make #acquisitions as competition intensifies on several fronts-from regional rivals to new-age, digital-first #brands.

In a strategic move , Unilever unveiled a major restructuring plan on Tuesday, announcing the spinoff of its ice cream unit—home to iconic brands like Magnum and Ben & Jerry's. This restructuring not only involves operational changes but also raises legal complexities, particularly regarding trademark ownership. Whether the ice cream business becomes a standalone entity or is picked up by another, the process of assigning trade marks to the new owner will be critical. #intellectualproperty #trademarks #foodandbeverages

Interesting development in #retail. Five leading grocery retailers team up to set up a joint #venturecapital fund - W23 Global The fund will seek to deploy $125m over the next 5 years, with a focus on driving faster, personalized experiences for consumers, optimizing grocery value chains, and tackling sustainability issues such as emissions reduction and packaging innovation. The portfolio companies will have the flexibility to engage with any customer while being supported by leading grocers If so far corporate venture capital initiatives track record were mostly not stellar, there is not shortage of initiatives with both #CPG manufacturers and retailers hoping to scoop and nourish the next big thing While the majority of the initiatives do no deliver, we have been extensively looking at both failed and successful ones, to derive the key success drivers To know more, read our latest publications on M&A: https://lnkd.in/dxBXPciH https://lnkd.in/dT5A-jGZ If you are interested in getting a full deck on M&A FMCG Success Drivers, leave your name in comments #fmcg #strategy #mergersandacquisitions Frederic Fernandez & Associates

As we were discussing Mergers & Acquisitions during our lectures, one question popped into my mind. " Is there any other motive for a company to merge into or acquire another company except profitability, growth, and expansion?" Then, the "Unilever’s Acquisition of The Vegetarian Butcher" case caught my attention. When Unilever acquired The Vegetarian Butcher in December 2018, it wasn’t just a business move—it was a statement about the future of food. This case is a very good example of "Acquiring for not only Profit but also for Sustainability". The prominent points of this Acquisition which sets it apart are: 1. Endorsing Sustainability: Alan Jope, the CEO of Unilever emphasized that the acquisition was about creating a more sustainable food system. He also stated that due to a shift in consumers lately to clean eating, they are increasingly aware of the environmental impact of their food choices, and they want brands that reflect their values. By acquiring The Vegetarian Butcher, Unilever is not only expanding its portfolio but also positioning itself as a champion of ethical consumption. 2. Promoting a Healthier Lifestyle: Unilever proudly shared its sustainability goals during the acquisition of The Vegetarian Butcher, viewing it as a vital step toward promoting healthier, plant-based diets. This move aligns with their mission to transform the food industry for a better planet. 3. Strategic Motives which were emphasized in this Acquisition: ->Unilever's acquisition of The Vegetarian Butcher aligns with its sustainability goals, reducing carbon footprints and promoting ethical sourcing.  ->It also taps into the booming $74.2 billion plant-based market by 2027, allowing Unilever to expand its brand and cater to growing consumer demand for healthier, sustainable food options while driving sales growth. This case illustrates that the motives behind M&A can extend beyond mere profit—embracing sustainability can create a more significant impact for both the business and society in this changing world. What do you think? Can there be other motives for a Merger beyond financial growth and sustainability? I would love to hear your thoughts!! #MergersAndAcquisitions #SustainabilityInBusiness #CSR #Unilever

The history of a global consumer goods giant began in the late 19th century with the establishment of two pioneering companies in the United Kingdom. One who revolutionized household cleaning with the introduction of Soap and the other was pioneer in the food industry with the affordable alternative to butter that is margarine, and this new company rapidly grew to become a significant player in the European market. In 1929, this merged with the great giant to create a new entity. This strategic merger combined their strengths in soap and margarine production, allowing the new company to diversify its product offerings and expand its market reach. The merger also enabled the new entity to leverage economies of scale, enhance research and development capabilities, and create a more resilient business model. Throughout the 20th century, the newly formed company continued to grow through acquisitions and the development of new products. The company expanded its portfolio to include a wide range of consumer goods, from food and beverages to personal care and home care products. In recent decades, the company has become a leader in corporate sustainability. It launched an ambitious sustainability plan in 2010, setting goals to reduce its environmental impact and increase its positive social impact. This plan focuses on improving health and well-being, reducing the environmental footprint, and enhancing livelihoods. The company has also embraced its productivity by engaging with Faber Infinite to enhance its performance across its operations. This strategic engagement underscores their commitment to continuously improve efficiency in a competitive market landscape. #FaberInfinite #OrganizationalTransformation #businessgrowth #innovation #SuccessStory #FMCG

The arguments for the divestiture make sense, considering Unilever's product portfolio, dedicated cold supply chains for such a small piece of the pie - only $8.6B - is questionable however as Unilever slims down to its core business and drives growth, expect it will be on the hunt for acquisitions that complement their business and offer synergies; let's not forget that back in 2017 KraftHeinz attempted to take over Unilever in an unsolicited offer of $143B and they might be interested in a "2nd Round" #mergers&acquisitions #unilever #kraftheinz #3G #buffet

💰Coca Cola vs PepsiCo? 💰 If you have seen this ad, you belong to my generation! Warren Buffett's investment in Coca-Cola is one of his most famous and successful ventures. Here's a detailed look at the timeline and context of his investment: 🍀Initial Investment Period 🍀 • Year of Investment > Buffett, through Berkshire Hathaway, began investing in Coca-Cola in 1988. • Accumulation Period > It took Buffett approximately one year to build a significant position in the company. By the end of 1989, Berkshire Hathaway had accumulated a substantial stake in Coca-Cola. • Amount Invested > Buffett invested about $1.3 billion in Coca-Cola during this period, acquiring 6.3% of the company's outstanding shares. 🍀 Context and Timing 🍀 • Post-1987 Market Crash > Buffett’s investment in Coca-Cola came shortly after the stock market crash of October 1987, when market valuations were depressed. This provided an attractive entry point for long-term investors like Buffett. • Strategic Opportunity > At that time, Coca-Cola was a well-established brand with strong global recognition and market leadership. The company was expanding its product offerings and international presence, presenting significant growth opportunities. 🍀 Outcome and Legacy 🍀 • Long-Term Hold > Buffett has famously held onto his Coca-Cola shares for decades, benefiting from the company's consistent dividends and stock appreciation. • Current Value > The value of Berkshire Hathaway’s stake in Coca-Cola has grown significantly, making it one of the most profitable investments in Buffett’s portfolio. The dividends alone have provided substantial returns over the years. 🍀 Rationale 🍀 • Brand Strength > Coca-Cola’s enduring brand and global reach aligned perfectly with Buffett’s preference for companies with a durable competitive advantage. • Management Trust > Buffett had confidence in Coca-Cola’s management and their strategic direction. • Predictable Earnings > The company's ability to generate consistent and growing earnings made it an attractive investment for Berkshire Hathaway. In summary, Warren Buffett began investing in Coca-Cola in 1988, completed the significant portion of his investment by 1989, and has held onto the shares since then, reaping substantial returns from this long-term commitment. Have a good weekend! At Value Investing Academy, We Care to Make You a Better Investor. #GrowviaViA #ValueInvesting #ValueInvestingAcademy #Stocks #WarrenBuffett