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George Ma
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Finance
February 1 15:13

Unilever considers exiting the tea business amid falling demand

Demand for black tea is falling, consumers prefer herbal or fruit varieties or other drinks, the company explained.
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Unilever (which owns Lipton and Brooke Bond brands) is considering selling its tea business after years of sales growth decline, The Wall Street Journal writes. The company's net profit for 2019 fell 38.4% to €6 billion, according to the company's report.
In 2018, report also took into account the results of margarine business sale, the company said. Tea business brings Uniliver about €3 billion annually, WSJ writes. Unilever's revenue for this year rose by 2% to €51.98 billion.
Company said consumption of black tea, which accounts for the majority of its portfolio, is declining in developed markets such as the United States and Europe. Consumers prefer herbal and fruit teas, the company explained.
Unilever has promised to revise its strategy for the tea business. After this, management may decide to sell some or all of its tea assets, WSJ writes.
Unilever acquired Lipton and Brooke Bond in 1971 and 1984 respectively, giving the company a leading position in the UK, WSJ says.