Unilever today announced an agreement to
acquire the TAZO® brand from Starbucks. TAZO® is a leading brand in
the fast-growing specialty tea category.
Under the asset purchase agreement, Unilever will acquire the
TAZO® brand and all related intellectual property, signature
recipes and inventory for US$384 million. The transaction
represents a multiple of 10 times pro forma EBIT. TAZO® had sales
of US$112.5 million over the past year*.
Founded in 1994, TAZO® has a strong position in Specialty Black,
Green and Herbal teas, as well as liquid concentrates focused in
the Chai Latte segment. The fast-growing specialty tea segment
makes up 48% of the total US$1.6 billion (FY 2016) at-home tea
category and trends suggest it will become more prominent in the
future**. TAZO® is sold primarily in grocery, mass and convenience
channels in the US and Canada, and is offered in formats including
packaged teas, K-Cup® pods and bottled ready-to-drink teas.
“With its strong appeal to millennials, TAZO® is a perfect
strategic fit for our US portfolio that includes exciting new
brands such as Seventh Generation, Dollar Shave Club and Sir
Kensington’s,” said Kees Kruythoff, President, Unilever North
America. “TAZO®’s solid position in the fast-growing specialty tea
segment, coupled with Unilever’s tea expertise, presents a
fantastic growth opportunity.”
“TAZO® represents another strategic addition which strengthens
our tea portfolio towards high growth segments. Its artfully
crafted specialty teas perfectly complement our global tea
business, which includes Lipton, Pure Leaf, PG Tips, T2 and our
recent addition, Pukka,” said Kevin Havelock, President of
Refreshment, Unilever.
Subject to regulatory approval, the transaction is expected to
close in the fourth quarter.
*LTM 6/30/2017 TAZO® Net Revenue is $112MM ($112,471,883).
**Unilever calculation based in part on data reported by Nielsen
through its ScanTrack Service for the tea category for the 52-week
period ending 12/17/16, for the total U.S. market, xAOC, according
to the Unilever custom product hierarchy. Copyright ©
2017, The Nielsen Company.
About Unilever North America:
Unilever is one of the world’s leading suppliers of Food, Home
Care, Personal Care and Refreshment products with sales in over 190
countries and reaching 2.5 billion consumers a day. In the United
States and Canada, the portfolio includes brand icons such as: Axe,
Becel, Ben & Jerry’s, Breyers, Caress, Clear Scalp & Hair
Therapy, Country Crock, Degree, Dollar Shave Club, Dove, Fruttare,
Good Humor, Hellmann’s, I Can’t Believe It’s Not Butter!, Klondike,
Knorr, Lever 2000, Lipton, Magnum, Nexxus, Noxzema, PG Tips,
Pond’s, Popsicle, Promise, Pukka, Pure Leaf, Q-tips, Seventh
Generation, Simple, Sir Kensington’s, St. Ives, Suave, T2, Talenti
Gelato & Sorbetto, TIGI, TRESemmé and Vaseline. All of the
preceding brand names are trademarks or registered trademarks of
the Unilever Group of Companies.
Unilever employs more than 9,000 people across North America –
generating more than $10 billion in sales in 2016.
The Unilever Sustainable Living Plan commits to:
- Helping more than a billion people
take action to improve their health and well-being by
2020.
- Halving the environmental impact of
our products by 2030.
- Enhancing the livelihoods of
millions of people by 2020.
The USLP creates value by driving growth and trust, eliminating
costs and reducing risks. The company’s sustainable living brands
are growing 50% faster than the rest of the business and delivered
more than 60% of the company’s growth in 2016.
Unilever was ranked number one in its sector in the 2017 Dow
Jones Sustainability Index. In the FTSE4Good Index, it achieved the
highest environmental score of 5. It led the list of Global
Corporate Sustainability Leaders in the 2017
GlobeScan/SustainAbility annual survey for the seventh year
running. Unilever has pledged to become carbon positive in its
operations by 2030.
For more information on Unilever U.S. and its brands visit:
www.unileverusa.com
For more information on Unilever Canada and its brands visit:
www.unilever.ca
Cautionary Statement/Safe Harbour:
This announcement may contain forward-looking statements,
including ‘forward-looking statements’ within the meaning of the
United States Private Securities Litigation Reform Act of 1995,
including statements related to underlying sales growth and
underlying operating margin. Words such as ‘will’, ‘aim’,
‘expects’, ‘anticipates’, ‘intends’, ‘looks’, ‘believes’, ‘vision’,
or the negative of these terms and other similar expressions of
future performance or results, and their negatives, are intended to
identify such forward-looking statements. These forward-looking
statements are based upon current expectations and assumptions
regarding anticipated developments and other factors affecting the
Unilever Group (the “Group”). They are not historical facts, nor
are they guarantees of future performance.
Because these forward-looking statements involve risks and
uncertainties, there are important factors that could cause actual
results to differ materially from those expressed or implied by
these forward-looking statements. Among other risks and
uncertainties, the material or principal factors which could cause
actual results to differ materially are: Unilever's global brands
not meeting consumer preferences; Unilever's ability to innovate
and remain competitive; Unilever's investment choices in its
portfolio management; inability to find sustainable solutions to
support long-term growth; customer relationships; the recruitment
and retention of talented employees; disruptions in our supply
chain; the cost of raw materials and commodities; the production of
safe and high quality products; secure and reliable IT
infrastructure; successful execution of acquisitions, divestitures
and business transformation projects; economic and political risks
and natural disasters; the effect of climate change on Unilever's
business; financial risks; failure to meet high and ethical
standards; and managing regulatory, tax and legal matters. These
forward-looking statements speak only as of the date of this
announcement. Except as required by any applicable law or
regulation, the Group expressly disclaims any obligation or
undertaking to release publicly any updates or revisions to any
forward-looking statements contained herein to reflect any change
in the Group's expectations with regard thereto or any change in
events, conditions or circumstances on which any such statement is
based. Further details of potential risks and uncertainties
affecting the Group are described in the Group's filings with the
London Stock Exchange, Euronext Amsterdam and the US Securities and
Exchange Commission, including in the Annual Report on Form 20-F
2016 and the Unilever Annual Report and Accounts 2016.
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version on businesswire.com: http://www.businesswire.com/news/home/20171102006644/en/
UnileverJoelle Hutcheon,
201-894-7760Unilever Media
RelationsJoelle.Hutcheon@unilever.com
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