Magazine article Marketing

Unilever Unites Two Food Firms

Magazine article Marketing

Unilever Unites Two Food Firms

Article excerpt

Unilever this week merges two of its food divisions, Brooke Bond and Van den Bergh, in a continued push to lower its cost base.

The decision is part of a streamlining process by Unilever which began with the merger of Mattesson Wall's and Van den Bergh Foods at the end of 1992 and Brooke Bond Oxo and Batchelors in 1989.

The latest merger is expected to generate cost savings in distribution and administration. There will also be savings on overheads as the newly-merged company will operate from one head office rather than the present two.

Simon Turner, marketing director of Van den Bergh Foods, said the merger would not result in mass redundancies, but it was too early to say exactly how many employees would be affected.

"The merger is part of a trend at Unilever to consolidate. The savings we make will free resources to enable us to spend more on research and development and promotions," he said.

Turner will sit on the ten-strong joint board which will manage the two companies until they are both formally merged on January 1 1995. …

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