Unilever to sell off pasta sauce division to Japan’s Mizkan
Unilever’s decision to sell off Ragú and Bertolli, in a deal worth $2.15bn, is another step in the company’s unloading of its food brands
Unilever is to sell off its famous Italian brands Ragù and Bertolli as it looks to focus less on food, and more on profitable beauty ranges
Unilever has agreed to sell off popular food brands Ragú and Bertolli to Japanese food manufacturer Mizkan for $2.15bn. Unilever has been on a roll with sell-offs recently, particularly of its food businesses, as it looks to develop its more profitable personal care lines.
The company has been unloading some of its slow-growing food brands in order to focus on its more profitable
beauty brands
Ragú is the biggest selling pasta sauce in the US, and was the defining brand to popularise Italian cuisine in the country. Together with Bertolli, they generate annual sales of over $600m, according to Unilever. Mizkan, on the other hand, has been quickly expanding in rapid markets: the 210-year-old family-company picked up Sarson’s Vinegar and Hayward’s pickles – two popular British brands – in 2012
“This sale represents one of the final steps in reshaping our portfolio in North America to deliver sustainable growth for Unilever, and enables us to sharpen our focus within our food business,” said Unilever President Kees Kruythoff in a statement. The company has been unloading some of its slow-growing food brands in order to focus on its more profitable beauty brands like Dove.
The deal includes two production sites, and will be a significant achievement for Mizkan. The company has been striving to be less dependent on Japanese markets, where it primarily manufactures condiments and rice wine.
“This transaction allows us to further achieve our objectives of diversification and expansion of our international footprint,” Kazuhide Nakano, Chairman and CEO of Mizkan Holdings, Mizkan Group’s parent, said in a statement. “Mizkan is strongly committed to the long-term growth of Ragú and Bertolli.”
Ragú commands 27 percent of the American sauce market, according to research by Euromonitor, and accounts for 40 percent of Unilever’s sauce business. However, sales have declined 18 percent since 2009, as independent brands have grown to account for up to a quarter of the market. Unilever sold Ragú’s British arm in 2011, as well as Skippy Peanut Butter, and some European meat businesses like Peperami, earlier this year. It is still looking to unload its Slim-Fast diet food business.
The deal is expected to be finalised in early June.
