00:00Well, Unilever, Danny, is yet another consumer packaged goods company looking to separate its
00:04slower-growing food assets from everything else, like personal care and wellness products.
00:09Over the past decade, Unilever has reduced its exposure to food, first by selling off its spreads
00:14business, including the I Can't Believe It's Not Butter brand, and last year by spinning off its
00:19ice cream division into Magnum Ice Cream. Unilever still holds a 20% stake in that,
00:25and it'll be selling it down in coming years. Now, its remaining food brands include Hellman's
00:29and Coleman's condiments, and according to Bloomberg reporting, Unilever could spin off
00:34its entire food business, keep some brands while separating the rest, or keep the current structure.
00:39It's still early days regarding timing. Any change may not happen before 2027. Now, Unilever is not
00:45alone. You think about Nestle, it plans to sell its remaining ice cream brands. Kraft Heinz was
00:50planning to split its condiments and grocery staples business, but the new CEO put that on hold and is
00:54investing more money into some brands. And of course, in 2023, Kellogg's split into a cereal
00:59company and snack company, and both, of course, later taken private. Dani. Well, Scarlett,
01:03to your point, it's not just Unilever. It's been happening in this sector. Why? What's the context
01:08for why major food companies are seemingly struggling to drive growth?
01:14Consumer tastes, an overall shift to wellness. Consumers want more fresh, less processed food.
01:19There's reduced demand for packaged food overall. And on top of that, you have the GLP weight loss drugs,
01:24which have changed how people eat. They want more protein, less calorie-dense foods.
01:28And of course, inflation. That means consumers are turning to cheaper store brands rather than
01:33paying a premium for brands. According to Bloomberg Intelligence, private label sales are seen rising
01:3827 percent between 2024 to 2030, while private label market share is seen rising to 22 percent from the
01:45current 20 percent.
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