3. Unilever
United Kingdom
www.unilever.com
Beauty sales: $15.5 billion
Corporate Sales: $55.1 billion
Paul Polman, a former executive at P&G and Nestlé, was named chief executive of Unilever. He will replace Patrick Cescau in early 2009. |
Products/Brands:: Soaps, deodorants, skin care and hair care under brands including Dove, Caress, Lux, Axe/Lynx, Rexona/Sure, Degree, Pond’s, Vaseline, Organics, Salon Selectives, SunSilk, Suave, ThermaSilk.
New Products: Vaseline Cocoa Butter range, Clear anti-dandruff shampoo, Sunsilk Captivating Curls Collection, Pond’s Flawless White skin lightening range.
Comments: Unilever made good progress in 2007, reported its group chief executive Patrick Cescau, with an overall underlying growth of 5.5%, the third consecutive year of accelerating sales growth. Results were in large part due to carrying out strategies in three primary areas: fast-growing markets of Asia, Africa and Latin America; growth in personal care; and a higher proportion of sales from vitality products (the company’s term for brands that help people feel good, look good and get more out of life; for example, Sunsilk helps you feel happier because your hair looks great).
Personal care continued strong growth, at nearly 7%, with sales of $15.5 billion. Beauty/personal care continues to be the company’s fastest-growing business, with strong global brands like Dove (the world’s No. 1 cleansing brand), Pond’s, Lux and Rexona leading the way.
In 2007, the international powerhouse focused on a global approach to innovation and sales growth. Clear, a new anti-dandruff shampoo was launched in several countries, including three of the biggest hair care markets in the world—China, Russia and Brazil; it also rolled into markets in Arabia, Egypt and the Philippines.
Dove, Lux, Rexona and Sunsilk are all one-billion euro brands. Dove has annual sales of over 2.5 billion euros, and outsells all other skin care bars in the U.S. combined. Lux hair is the market leader in Japan. Rexona is the world’s largest deodorant in sales and market share and holds the No. 1 position in more than half the world. Sold in more than 80 countries, Sunsilk is the leading brand in Asia, Latin America and the Middle East. Lifebuoy leads every Asian market in which it’s sold; nearly half of the Lifebuoy brand’s consumption is in rural Asia, where most of the population lives on less than $1 a day.
In skin care, the Pond’s brand continued strong sales in southeast Asia, China and India, powered in part by the launch of a new anti-aging range. Vaseline was its fastest-growing global skin brand, with underlying sales growth of more than 8%. Vaseline Cocoa Butter range was the company’s most successful launch in the U.S. in 10 years. Pond’s Flawless White, which claims to help deliver lighter skin and a reduction in dark spots and blemishes in just seven days, has rung up sales in Asia, where Hindustan Unilever Ltd. plans to launch a range of skin care products that offer protection from pollution.
First half 2008 results revealed underlying sales growth of 7%, with personal care up 5.7%. At a global level, all categories grew by more than 5% in the first half year, but the company was plagued by a softening of the market and increasing commodity costs, and reported that price increases to counter rising commodity prices had slowed sales growth in the second quarter. A restructuring program was put into place, including closing 23 factories and selling low-growth businesses.
On the heels of the report, a major management change was announced. Paul Polman, a former executive at two of Unilever’s competitors, P&G and Nestlé, will replace Patrick Cescau as CEO in early 2009. He will become the first outsider to lead Unilever.
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