FDBusiness.com

Poor spring weather dents Unilever’s ice cream sales in Europe

 Breaking News
  • Ardgowan Unveils Plans For Inverclyde Distillery Ardgowan Distillery has revealed ambitious designs for its new £12 million distillery which is being built on the Ardgowan Estate near Inverkip, 30 miles west of Glasgow. The plans showcase the flagship building which has just secured revised planning consent from Inverclyde Council. The striking new design, by Michael Laird Architects, brings a number of improvements [...]...
  • HKScan Launches Exports of Finnish Poultry Products to Sweden HKScan, the Nordic food and meat group, has started exporting Finnish poultry products to Sweden. They will initially be sold through the largest retailer ICA’s outlets under the Karinäs®(Kariniemen®) brand. The launch gives Swedish consumers access to a new innovation: high welfare farm-born poultry that is hatched on the farm where it is raised. This new concept is [...]...
  • Almonds Retain Top Spot For Nut Introductions in Europe According to Innova Market Research’s latest Global New Product Introductions Report, almonds retain the number one spot for nut introductions in Europe. With a 47% share of global almond product introductions, the region leads globally for the eleventh year running. Europe as a whole saw a total of 5,017 new introductions with almonds – a [...]...
  • Arla Foods UK Launches New Standards Model to Bring Sustainable Change to Dairy Farming With ongoing volatility in the global milk markets, increasing consumer misunderstanding of the sector, polarised levels of support for UK dairy farmers and a new post-Brexit Agriculture Bill the challenges for dairy farmers are mounting. Farmer-owned co-operative Arla Foods has launched ‘Arla UK 360’ – a new standard in UK dairy farming. The Arla UK 360 [...]...
  • €172 Million to Promote EU Agri-food Products In and Outside the EU The European Commission will provide funding of €172.5 million from the EU agricultural budget to promote EU agri-food products in Europe and across the world. 79 campaigns, covering a wide range of products such as dairy products, olives and olive oil, and fruit and vegetables, will be rolled out over the next three years. Agriculture and [...]...

Poor spring weather dents Unilever’s ice cream sales in Europe

April 26
10:30 2013

Unilever’s ice cream sales in Europe have been hit by the poor Spring weather, it has emerged as the consumer goods giant announced its first quarter (Q1) results yesterday (April 25).

The group missed C ity analysts’ expectations in Q1 on weak volumes (up by 2.2% compared with expectations of +3.2%) and weak trading in Europe, according to Investec’s Martin Deboo. Organic sales were down by 3.1%. Part of the problem is that Unilever’s performance in Europe in Q1 was against comparatively strong trading for the same period last year.

Unilever reported increased turnover of 0.2% for Q1 to €12.2bn, which included a negative currency impact of 3.5%.

“The Q1 was against a tough prior year volume comparison, driven by an extra trading day, an earlier Easter and a strong start to the ice cream season,” said Deboo.

Extremely cold weather

In its trading statement, Unilever reported that overall ice cream sales were up slightly, despite a high prior year comparator and the extremely cold weather conditions that prevailed in much of Europe.

Magnum, now a €1bn brand, continued to make good progress supported by the roll-out of Magnum Gold to the US, the roll-out of the ‘5 kisses’ limited editions and the new pint format in Europe, and the launch of Magnum Pink and Magnum Black in Mexico and Turkey. C ornetto was relaunched in Europe, Mexico and South East Asia and Unilever introduced a new C ornetto mini variant in Europe, while Fruttare was launched in the US.

In teas, it reported that its Brooke Bond range of brands performed well in India and PG Tips grew in the UK in a strongly promotional market.

In foods, Unilever’s savoury and dressings business continued to grow in Q1, underpinned by innovations such as Knorr jelly bouillon variants, now in more than 35 markets, and baking bags, now in more than 40 markets. In dressings, Hellmann’s growth was driven by market development activities encouraging new uses of mayonnaise and the launch in Europe of a superior squeeze pack.

Spreads activity declined

Its spreads activity declined, however, driven by lower volumes in a tough promotional environment.

Unilever stated: “Market dynamics are not currently in our favour with consumers switching to alternatives. Despite the success of recent innovations such as Flora Buttery and liquid margarines, which have now been launched in Turkey under the Becel brand, we have more to do to communicate the improved taste and health benefits of our margarines to consumers.”

Commenting on the results, Unilever ceo Paul Polman said: “We maintained good growth momentum in the first quarter, despite challenging economies and the tough competitive environment. This performance is further evidence that Unilever is becoming fit to win and capable of delivering consistent growth ahead of our markets. Our strategy is working.”

He added that growth in developed markets remained sluggish. “Europe faced a particularly strong prior year comparator and whilst the overall performance was solid, the reported growth was held back by the slow start to the ice cream season and weakness in spreads,” he said.

About Author

colin

colin

Related Articles



Food & Drink Business Conference & Exhibition 2016

Upcoming Events

  • October 18, 2018Future Food-Tech London - Marketing Partnership
  • October 21, 2018Int'l Food Products Exhibition (Sial)
  • October 25, 2018Italian Espresso Coffee Show (TriestEspresso Expo)
  • October 25, 2018Finnish Food Fair
AEC v1.0.4

find food jobs

The Magazine

F&D Business Preferred Suppliers

New Subscriber





Subscribe Here



Advertisements