Recently, Unilever announced about selling their tea business. This news has made everyone wonder about the decision and the cause which gave rise to the decision. The net worth of this tea business is more than million dollars. And it was quite a success till last year. Then what’s the reason behind Unilever selling tea business. Let’s get to the root of it!
Unilever’s Worldwide Tea Business
Ekaterra, Unilever’s tea business is at it’s prime in the industry. And it has the holdings of the world renowned tea brands including Lipton, PG tips, Pukka, T2 and TAZO. Ekaterra’s business has brought in a huge net worth of €2 billion in 2020 but has suddenly averted from it’s way to the peak. So last week, Unilever has decided to sell the business at it’s prime to CVC capital partners.
The Transactions
It’s been announced that the transactions will be completed eventually. The receipts of the transactions are that’s why yet to be received. And thus, the completion of the transactions are said to be done in the late 2022. But there’s something we’re missing!
The Tactics Behind The Decision
Here are the loop-holes! The selling agreement doesn’t include the access of tea business to India, Nepal and Indonesia and will remain under Unilever. Furthermore, Pepsi and Lipton and their related distribution businesses and other joint ventures will also remain under Unilever and will not be included in the agreement.
What Has Unilever Said?
In a recently released statement, The CEO of Unilever Alan Jope said that this selling agreement is nothing like backing away. He said that behind this decision, a huge plan of Unilever is hidden. They have some greater things to focus on.
CVC capital partner’s Managing Director, Pev Hooper stated that Ekaterra is a very beneficial selection in this market to increase it’s upcoming growth. CVC is said to take the Ekaterra to it’s peak in success. But the business will remain under Unilever until the transactions are done. And during this period, it’s development may also decreases. Anyways, it’s confirmed that in 2022 after the take-over of Ekaterra by CVC, a future full of development and growth is awaited.
