Unilever part of big brand comeback
By Sarah Wood | 24th April 2019
Unilever, which has an ice cream factory in Barnwood, is just one of the global megabrands bucking the trends and making a comeback.
Big brands have been under pressure both from millennial consumers, many of whom prefer local or artisanal food and drink products, and from cheaper supermarket versions of their products, as reported by Sky.
In February, Kraft Heinz, one of the world's biggest companies, issued a shock profit warning. But the latest figures suggest the global megabrands are coping well with the pressure they are under.
Last week, Unilever, reported that its sales during the first three months of the year were up 3.1 per cent on the same period last year.
Meanwhile, Nestle, the world's biggest food company, report that sales were up 3.4 per cent for the same period. And Coca-Cola reported a six per cent rise in underlying sales for the quarter.
So why have things changed for these companies? In the case of both Nestle and Unilever, sales growth was partly driven by a recovery in emerging markets, like Brazil.
Companies have also shifted resources and marketing budgets into products and ranges that reflect a growing trend for healthier eating. Unilever is pushing more vegetarian products and Nestle is working on a vegan range.
Coca-Cola has benefited from growth in products like sports drinks and bottled water.
With wages on the increase in some key economies, like the US and Germany, it is easier for established brands to pass on inflation, in the form of higher pricing, where they are able to convince consumers of the value of their brands.
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