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Tag: Lipton

  • Diageo appoints Aanandita Datta as vp marketing and category head

    Diageo appoints Aanandita Datta as vp marketing and category head

    MUMBAI: Diageo India has named Aanandita Datta as its new vice president, marketing and category head. She moves from Pizza Hut, where she was chief marketing officer for India and the subcontinent, and before that spent nearly a decade at Unilever.

    A marketing veteran with 19 years of experience, Datta has worked across categories from oral care and foods to beverages. She launched and scaled brands such as Sensodyne and Lipton, built new categories like green tea and sensitive oral care, and led Horlicks’ major relaunch in 2010. At Pizza Hut, she drove campaigns to court young consumers and make the brand part of “young India’s daily life”.

    Datta described herself as a “storyteller with a curious mind”, saying her purpose lay in “exploring the unknown and inspiring others to do the same”. She has previously managed portfolios worth over €1.3bn, partnered with the UN and Indian government on sustainability projects, and steered both disruptive innovation and mature-brand growth.

    At Diageo, she takes charge of marketing strategy and category development in one of India’s most competitive consumer markets.

  • Unilever to sell its global tea biz to CVC Capital for $5.1 billion

    Unilever to sell its global tea biz to CVC Capital for $5.1 billion

    Mumbai: Unilever PLC has agreed to sell its global tea business to CVC Capital Partners for $5.1 billion, concluding a process of reviewing and spinning off the division that took more than two years. The business being sold, called Ekaterra, hosts a portfolio of 34 tea brands including Lipton, PG Tips, Pukka Herbs, and Tazo, and generated revenues of two billion euros in 2020.

    The sale, however, excludes Unilever’s tea units in India and Indonesia and its partnerships in the ready-to-drink tea market, such as its bottled tea joint venture with PepsiCo.

    CVC reached an agreement with the British multinational consumer goods giant after beating out rival private equity bidders including Advent International. Ekaterra will be sold to CVC’s Capital Fund VIII on a cash-free and debt-free basis in a process that is expected to conclude in the second half of 2022, Unilever said in a statement on Thursday.

    The company said in January 2020 that it was starting a strategic review of its tea business that could result in a partial or full sale. The transaction marks a much-needed win for Unilever’s chief executive officer Alan Jope, who’s been seeking to rejig the company’s portfolio to keep up with changing consumer tastes.

    “The evolution of our portfolio into higher growth spaces is an important part of our growth strategy. Our decision to sell ekaterra demonstrates further progress in delivering against our plans,” Jope said.

    The sale relieves Unilever of a business that has been a drag on earnings for several years as demand for black tea waned and consumer tastes changed in recent years amid a shift to green tea and other flavourful herbal alternatives.

    The global consumer goods major has been under some pressure as its stock languishes and it struggles to compete in the face of high inflationary costs, especially in emerging markets, its biggest source of revenue.

  • HUL marketing spends up in third quarter

    HUL marketing spends up in third quarter

    BENGALURU: Indian FMCG giant Hindustan Unilever Ltd (HUL) is one of the biggest advertisers in India. On Indian television, the company releases the highest number of advertisements by far according to Broadcast Audience Research Council of India (BARC) weekly data for top 10 advertisers across genre. According to BARC’s weekly data for calendar year 2017 (week 1 starting Saturday, 31 December 2016 to week 52 ending on Friday, 29 December 2017), the FMCG behemoth released a staggering 68,12,298 ad insertions. This number does not include the television insertions by Brooke Bond Lipton India Ltd (Lipton), Lakme Lever Ltd (Lakme) and Ponds India Ltd (Ponds).

    Industry sources said that HUL had promoted its products quite aggressively in Q3 2018 by way of sops to the players across the sales and distribution chain as well as to consumers for some of its brands. In the current fiscal that started on 1 April 2017 (FY 2018) and will end on 31 March 2018, the company spent the highest amount as yet in the quarter ended 31 December 2017 (Q3 2018, quarter under review) towards advertisement and sales promotions at Rs 1,107 crore. In terms of percentage of total revenue also, HUL’s Q3 2018 ad and sales promotion spend works out to 12.66 percent, another peak for this year. HUL’s year-over-year (y-o-y) and quarter-on-quarter (q-o-q) spends towards advertisement and sales promotion in Q3 2018 increased 29.47 percent and 8.21 percent respectively.Please refer to the graph below for HUL’s ad and sales promotion spends during the last eight quarters.

    public://g1.jpg

    HUL was the top advertiser during all the 52 weeks of 2017 according to BARC data.Please refer to the graph below:

    public://g2.jpg

    It must be noted that BARC provides weekly data – BARC’s week commences on a Saturday and ends on the next Friday. Hence the quarterly TV insertions numbers mentioned above are approximate.

    HUL’s Tea and beverages company Lipton was present among BARC’s top 10 advertisers across genre lists during 50 of the 52 weeks. In week 52 of 2017, Lipton had 32,049 ad insertions, the highest by it in the year, while in week 19 of 2017 it had 15,719 TV ad insertions, the lowest while it was present in BARC’s list of top 10 advertisers across genre. Lakme was present in BARC’s weekly lists for 3 weeks of 2017, while Ponds was present in the lists for 15 of the 52 weeks of 2017. Assuming that these three advertisers released 20 percent additional television advertisements during the year, the total number of TV insertions by HUL during the year works out to almost 82 lakhs.

    HUL chairman Harish Manwani said: “We have delivered another strong performance in the quarter, with broad based growthacross categories and further improvement in margins. We remain positive about the mid-term outlook of the industry and willcontinue to invest strongly in our core brands and developing categories of the future. There are early signs of commodity costinflation and we will further sharpen our focus on cost effectiveness programs and manage our business dynamically forcompetitiveness and sustained profitability.”
     

  • Ad spends at Hindustan Unilever shrink marginally in Q1-2017

    Ad spends at Hindustan Unilever shrink marginally in Q1-2017

    MUMBAI: Hindustan Unilver Ltd (HUL) shaved off Rs 13-odd crore in advertising spends in Q1-2017.

    According to its latest quarter (30 June 2016) financials reported yesterday, the FMCG megacorp spent Rs 879.73 crore on advertising and promotions (A&P) as compared to Rs 892.73 crore in the previous year’s corresponding period. At this level, A&P is at 11 per cent of sales and is down 60 basis points, says the company.

    Since April 2016, the company has reorganized its businesses under four main categories: home care, personal care, foods, and refreshments with a residual segment called “others” and has even reconstituted its management committee based on this structure.

    It has also started reporting its results in compliance with the Ind AS (Indian accounting system) since Q1-2017.

    HUL reported revenues of Rs 7987.4 crore as against Rs 7712.74 crore in Q1-2016. Chairman Harish Manwani said that the market conditions were challenging with growth slowing down in both volume and value terms. HUL, however, tracked ahead of the market with an improvement in its margins, he said. Both in value and volume terms, the company grew four per cent, even as operating margin swelled by 70 basis points. Operating profit in Q1-2017 stood at Rs 1542.60 crore (Q1-2016 Rs 1437.08 crore) while net profit was at Rs 1,173.90 crore in Q1-2017 (Rs 1069.17 crore in Q1-2016).

    HUL’s re-categorisation of its product portfolio means that:

    Home care includes: fabric wash, household care, water (Surf Excel, Rin, Active Wheel, SunLight, Comfort, Vim Domex, Cif and Unilever Pure).

    Personal Care includes personal wash, skin care, hair care, oral care, deodrants, cosmetics (Lux, Dove, Pears, Rexona, Hamam, Lifebuoy, Fair & Lovely, Pond’s, Vaseline, Lakme, St Ives, Clinic Plus, Sunsilk, Tresemme, Indulekha, Closeup, Pepsodent, Ayush and Axe).

    Refreshment includes: Tea, Coffee, ice-creams and frozen desserts (Taj Mahal, Red Label, 3 Roses, Taaza, Lipton, Bru, Kwality Walls, Magnum).

    Foods includes ketchups, jams soups and instant noodles (Kissan, Knorr, Annapurna.)

    The standout during the quarter was the home care segment, which saw sales expanding by seven per cent. It was followed by refreshment which grew by five per cent, food by four per cent and finally personal care which expanded by two per cent.

    The home care segment, according to the company, is witnessing growth in the fabric wash category primarily from the premium products with Surf doing well, even as the Unilever Pure water devices are reporting traction in off take.

    The refreshment segment reported a healthy growth in green and natural teas, even as ice cream and frozen desserts grew robustly in Q1-2017.

    In the foods segment, Kissan Ketchups expanded healthily, even as Knorr soups and noodles reported robust growth, says the company.

    The personal care segment witnessed a shrinkage in the personal wash category even as the skin care category grew with BB and CC creams doing well in the premium range.

    The company also completed its acquisition of Indulekha – including the trademarks Indulekha and Vayodha – from Mosons group on 7 April 2016. The acquisition is costing HUL Rs 330 crore plus a deferred consideration of 10 per cent of domestic sales from the brands, payable annually, over five years.

    HUL also said that it is going ahead with its intention to divest from any business which is not part of its core activities. This means it is offloading its 50 per cent equity stake in its 21 year old joint venture in Kimberly-Clarke Lever Private Ltd (KCCL) to its joint venture partner Kimberly-Clarke. The company produces and markets baby & child care and feminine care products under the brand Huggies and Kotex.

    Manwani, in the Q1-2017 investor report, expressed concern on recent volume trends, saying that market growth is likely to continue to remain muted but he was optimistic about the medium term impact of the monsoon and seventh commission payout. “Even though input costs could rise, the company will continue to focus on volume driven growth with an improvement in margins,” he said.

    Observers, however, opine that HUL, along with other FMCG MNCs, is under attack from a host of new home grown nimbler and hungry-for-growth competitors such as Patanjali Ayurveda. How it tackles their onslaught in the coming year will impact its performance.

  • Ad spends at Hindustan Unilever shrink marginally in Q1-2017

    Ad spends at Hindustan Unilever shrink marginally in Q1-2017

    MUMBAI: Hindustan Unilver Ltd (HUL) shaved off Rs 13-odd crore in advertising spends in Q1-2017.

    According to its latest quarter (30 June 2016) financials reported yesterday, the FMCG megacorp spent Rs 879.73 crore on advertising and promotions (A&P) as compared to Rs 892.73 crore in the previous year’s corresponding period. At this level, A&P is at 11 per cent of sales and is down 60 basis points, says the company.

    Since April 2016, the company has reorganized its businesses under four main categories: home care, personal care, foods, and refreshments with a residual segment called “others” and has even reconstituted its management committee based on this structure.

    It has also started reporting its results in compliance with the Ind AS (Indian accounting system) since Q1-2017.

    HUL reported revenues of Rs 7987.4 crore as against Rs 7712.74 crore in Q1-2016. Chairman Harish Manwani said that the market conditions were challenging with growth slowing down in both volume and value terms. HUL, however, tracked ahead of the market with an improvement in its margins, he said. Both in value and volume terms, the company grew four per cent, even as operating margin swelled by 70 basis points. Operating profit in Q1-2017 stood at Rs 1542.60 crore (Q1-2016 Rs 1437.08 crore) while net profit was at Rs 1,173.90 crore in Q1-2017 (Rs 1069.17 crore in Q1-2016).

    HUL’s re-categorisation of its product portfolio means that:

    Home care includes: fabric wash, household care, water (Surf Excel, Rin, Active Wheel, SunLight, Comfort, Vim Domex, Cif and Unilever Pure).

    Personal Care includes personal wash, skin care, hair care, oral care, deodrants, cosmetics (Lux, Dove, Pears, Rexona, Hamam, Lifebuoy, Fair & Lovely, Pond’s, Vaseline, Lakme, St Ives, Clinic Plus, Sunsilk, Tresemme, Indulekha, Closeup, Pepsodent, Ayush and Axe).

    Refreshment includes: Tea, Coffee, ice-creams and frozen desserts (Taj Mahal, Red Label, 3 Roses, Taaza, Lipton, Bru, Kwality Walls, Magnum).

    Foods includes ketchups, jams soups and instant noodles (Kissan, Knorr, Annapurna.)

    The standout during the quarter was the home care segment, which saw sales expanding by seven per cent. It was followed by refreshment which grew by five per cent, food by four per cent and finally personal care which expanded by two per cent.

    The home care segment, according to the company, is witnessing growth in the fabric wash category primarily from the premium products with Surf doing well, even as the Unilever Pure water devices are reporting traction in off take.

    The refreshment segment reported a healthy growth in green and natural teas, even as ice cream and frozen desserts grew robustly in Q1-2017.

    In the foods segment, Kissan Ketchups expanded healthily, even as Knorr soups and noodles reported robust growth, says the company.

    The personal care segment witnessed a shrinkage in the personal wash category even as the skin care category grew with BB and CC creams doing well in the premium range.

    The company also completed its acquisition of Indulekha – including the trademarks Indulekha and Vayodha – from Mosons group on 7 April 2016. The acquisition is costing HUL Rs 330 crore plus a deferred consideration of 10 per cent of domestic sales from the brands, payable annually, over five years.

    HUL also said that it is going ahead with its intention to divest from any business which is not part of its core activities. This means it is offloading its 50 per cent equity stake in its 21 year old joint venture in Kimberly-Clarke Lever Private Ltd (KCCL) to its joint venture partner Kimberly-Clarke. The company produces and markets baby & child care and feminine care products under the brand Huggies and Kotex.

    Manwani, in the Q1-2017 investor report, expressed concern on recent volume trends, saying that market growth is likely to continue to remain muted but he was optimistic about the medium term impact of the monsoon and seventh commission payout. “Even though input costs could rise, the company will continue to focus on volume driven growth with an improvement in margins,” he said.

    Observers, however, opine that HUL, along with other FMCG MNCs, is under attack from a host of new home grown nimbler and hungry-for-growth competitors such as Patanjali Ayurveda. How it tackles their onslaught in the coming year will impact its performance.

  • Verizon acquires AOL for $4.4 billion

    Verizon acquires AOL for $4.4 billion

    MUMBAI: Taking another significant step in building digital and video platforms to drive future growth, Verizon Communications Inc. has acquired AOL Inc. for an estimated total value of approximately $4.4 billion.

     

    AOL chairman and CEO Tim Armstrong will continue to lead AOL operations after closing.

     

    Verizon’s acquisition further drives its LTE wireless video and OTT (over-the-top video) strategy. The agreement will also support and connect to Verizon’s IoT (Internet of Things) platforms, creating a growth platform from wireless to IoT for consumers and businesses.

     

    The combination of Verizon and AOL creates a scaled, mobile-first platform offering directly targeted at what eMarketer estimates is a nearly $600 billion global advertising industry. AOL’s key assets include its subscription business; its premium portfolio of global content brands, including The Huffington Post, Tech Crunch, Engadget, MAKERS and AOL.com, as well as its millennial-focused OTT, Emmy-nominated original video content; and its programmatic advertising platforms.

     

    Verizon chairman and CEO Lowell McAdam said, “Verizon’s vision is to provide customers with a premium digital experience based on a global multiscreen network platform. This acquisition supports our strategy to provide a cross-screen connection for consumers, creators and advertisers to deliver that premium customer experience.”

     

    “AOL has once again become a digital trailblazer, and we are excited at the prospect of charting a new course together in the digitally connected world. At Verizon, we’ve been strategically investing in emerging technology, including Verizon Digital Media Services and OTT, that taps into the market shift to digital content and advertising. AOL’s advertising model aligns with this approach, and the advertising platform provides a key tool for us to develop future revenue streams,” he added.

     

    Armstrong said, “Verizon is a leader in mobile and OTT connected platforms, and the combination of Verizon and AOL creates a unique and scaled mobile and OTT media platform for creators, consumers and advertisers. The visions of Verizon and AOL are shared; the companies have existing successful partnerships, and we are excited to work with the team at Verizon to create the next generation of media through mobile and video.”

     

    The transaction will take the form of a tender offer followed by a merger, with AOL becoming a wholly owned subsidiary of Verizon upon completion.

     

    The transaction is subject to customary regulatory approvals and closing conditions and is expected to close this summer.

     

     

    Verizon expects to fund the transaction from cash on hand and commercial paper. The company also continues to expect to return to pre-Vodafone transaction credit ratings in the 2018-2019 timeframe.

     

    Transaction advisers for Verizon were Lion Tree Advisors; Guggenheim Partners; and Weil, Gotshal&Manges. AOL advisers were Allen & Company LLC and Wachtell, Lipton, Rosen & Katz.

  • Razorfish brings on board Anushree Ghosh

    Razorfish brings on board Anushree Ghosh

    MUMBAI: Razorfish today announced the appointment of Anushree Ghosh as director, strategic planning who comes with a rich experience of 15 years. She will be operating from the Mumbai office but is mandated to lead strategy across key businesses for Razorfish India. She will be reporting in to Charulata Ravikumar, Chief Executive Officer Razorfish India.  

    Commenting on the appointment Charulata Ravi Kumar, CEO Razorfish India, “We are constantly seeking highly curious people who have the energy and a razorsharp mind to persistently look for lateral solutions for the clients we partner. Her ability to quickly cut through the million possibilities to get to that one clear insight will be a big asset for us.”

    On her appointment Anushree Ghosh – Director, Strategic Planning, Razorfish India, “I have admired Razorfish for long and have been closely following all their work in India and globally. The opportunity to drive Business Transformation for some of the most prestigious brands in India is a fantastic one, and I am really excited to be part of the same.”

    Charulata adds, “A planner who brings the synchronization of brand and digital strategy is unique and Anushree’s experience in both will help our clients to see the brand, not in pieces, but rather as a seamlessly integrated whole.”

    Anushree has worked with eminent agency networks like Law and Kenneth, JWT and SapientNitro. Over the years Anushree has driven strategy for brands such as e-Bay, Nestle, Horlicks, Smirnoff, Lipton, Marks & Spencer, Lux, Magnum Ice Cream, Lifestyle.

     

  • Publicis Groupe to acquire Sapient for $3.7 billion

    Publicis Groupe to acquire Sapient for $3.7 billion

    MUMBAI: Publicis Groupe and Sapient have announced that they have entered into a definitive agreement under which Publicis Groupe will acquire Sapient in an all-cash transaction for $3.7 billion, or $25 per share.

     

    The agreement has been approved unanimously by the management and supervisory boards of Publicis Groupe and the board of directors of Sapient.

     

    Publicis Groupe chairman and CEO Maurice Levy said, “Sapient is a ‘crown jewel,’ a one of a kind company born in the technology space with strengths in marketing, communications, consulting and omni-channel commerce, all of which are equally important to best help clients achieve their digital transformation. It will also give Publicis Groupe access to new markets and creating new revenue streams.”

     

    “This acquisition fulfills many of Publicis Groupe’s objectives: we will enhance our leadership position in digital, achieve our goal of deriving 50% of our revenues from Publicisgroupe.com 3/9 digital and technology three years ahead of our 2018 plan, and leverage technology, consulting capabilities to expand in new verticals, and offering new and exciting opportunities to our talents,” he added.

     

    The acquisition will accelerate achieving Publicis Groupe’s objective to become the leader at the convergence of communication, marketing, commerce and technology, said the press release.

     

    Through this, the company will create a platform to be named Publicis.Sapient, which will focused exclusively on digital transformation and the dynamics of an always-on world across marketing, omni-channel commerce, consulting and technology.

     

    Sapient CEO and co-Chairman Alan J Herrick will also be joining Publicis Groupe senior management team as CEO of Publicis.Sapient and Sapient co-founder and co-chairman Jerry A Greenberg will join the company’s supervisory board.

     

    Sapient president, CEO and co-chairman Alan J Herrick added, “This transaction provides substantial value to our shareholders, offers an ideal cultural match for our people and provides an opportunity to share a wealth of new capabilities with our clients.”

     

    “The Sapient team has been on a 24-year journey building a company with the objective of creating significant impact for our clients and the industries in which they operate. With Publicis Groupe, we have found a partner that accelerates the level of transformation we can drive into the marketplace,” he further stated.

     

    The combination of Publicis Groupe and Sapient is expected to drive cost savings through the integration of digital production leveraging Sapient’s substantial production infrastructure in India, real estate consolidation, G&A reductions and procurement savings, said the companies in a joint statement.

     

    “The newly created Publicis.Sapient platform will create significant opportunities for our tremendously talented people across the platform. We will also be able to deploy our capabilities on a global scale through Publicis Groupe’s significant international presence. With access to the world’s greatest creative talent and media expertise, as well as a strong global footprint, we will be better positioned to identify and pursue market opportunities all over the world,” added Herrick.

     

    In connection with the tender offer, Jerry A Greenberg, J Stuart Moore, and Alan J Herrick have entered into a tender and support agreement with Publicis Groupe pursuant to which they have agreed to tender an aggregate of approximately 18 per cent of Sapient’s outstanding shares in the offer.

     

    The completion of the tender offer is subject to certain customary terms and conditions, including the tender of at least a majority of the outstanding shares of Sapient, antitrust and other regulatory clearances in the US, and antitrust clearance in Germany. The transaction is expected to close in the first quarter of 2015.

     

    The completion of the tender offer is subject to certain customary terms and conditions, including the tender of at least a majority of the outstanding shares of Sapient, antitrust and other regulatory clearances in the US, and antitrust clearance in Germany. The transaction is expected to close in the first quarter of 2015, added the press release.

     

    BofA Merrill Lynch and Rothschild acted as financial advisors and Wachtell, Lipton, Rosen & Katz is serving as legal advisor to Publicis Groupe while Goldman, Sachs & Co. and Blackstone Advisory Partners L.P. acted as financial advisors and Cravath, Swaine & Moore LLP acted as legal advisor to Sapient.

  • Unilever sells Sanex to Colgate-Palmolive for $940 million

    Unilever sells Sanex to Colgate-Palmolive for $940 million

    MUMBAI: Unilever, the consumer goods firm that owns brands such as Dove, Lipton and Hellmann‘s, has entered into an agreement to sell the global soap maker Sanex to Colgate-Palmolive for $940 million while buying Colgate-Palmolive‘s laundry detergent brands in Colombia for $215 million.

    European Commission asked Unilever to part from Sanex for anti-trust reasons after the Anglo-Dutch company acquired it when buying U.S. group Sara Lee‘s personal care business in 2009.

    The acquisition of Colgate-Palmolive‘s laundry detergent brands is subject to regulatory approval and the completion of the Sanex disposal to Colgate-Palmolive.

    In 2010, Sanex had garnered net sales of €187 million, mainly from Western Europe.