Unilever may divest low-margin food brands, Fitch reports

British-Dutch consumer goods company Unilever may divest its low-growth food business to focus on high-margin personal care operations, particularly in emerging markets, according to Fitch Ratings.

The ratings firm said that Unilever may sell the brands in its savoury, dressings and spreads business, where the scope for growth is the weakest and where the company has little potential to add value through innovations in packaging and recipes.

The divestments of individual food brands will not only boost the company’s value, but will also make it easier to secure a buyer in a particular food segment.

In November, Unilever agreed to sell its Culver Specialty Brands division to US-based B&G Foods for $325m.

The company continues to focus on its personal care business; it recently acquired 82% of Russian beauty company Kalina and also announced €90m ($122.20m) investment to build a new personal care factory in Indonesia.