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Unilever is exploring the sale of healthy snack brand graze as new chief presses for consumer groups are moving forward with plans to lean its portfolio into food and personal care and beauty.
The manufacturers of Dove Soap and Marmite have recently approached many consumer goods groups and food manufacturers to assess their interest in purchasing graze, according to those familiar with the issue.
One banker estimated that Graze, which Unilever bought for £150 million in 2019, would be valued between £50 million and £80 million on sale. Unilever declined to comment.
Graze won £40 million in revenue in 2023, down 11% year-on-year, according to its latest set of published accounts. This is compared to annual revenue of £59.9 million in the year before it was acquired by Unilever. The brand, which sells roasted corn oat bars and packets, has denounced the recent decline in consumer sales.
According to an account filed with the UK company House, Graze commits an operating loss each year under Unilever’s ownership.
Unilever promoted Chief Financial Officer Fernando Fernandez to Chief Executive Officer in March, suddenly replacing it with Heinschumacher, who had planned to sell a food brand that generated an annual revenue total of 100 million euros as part of its turnaround effort.
Fernandez continues his predecessor’s plans as part of a shift in focus to higher margin beauty, personal care, and health and wellness categories.
For the past six months, Unilever has sold Dutch brands Conimex and Unox, as well as the plant-based brand The Vegetarian Butcher.
Graze, acquired by Unilever from private equity group Carlisle, was founded in 2005 as a snack box delivery service and began supplying supermarkets and other retailers in 2015.
Unilever bought the brand as part of a push to consumer sales, including the $1 billion acquisition of Subscription Razor Service Dollar Shave Club to meet growing consumer demand for healthy snacks.
However, Graze’s potential sale was another indication that betting on the subscription business failed to earn FTSE 100 Company, selling Dollar Shave Club in 2023 after struggling to integrate into the group.
However, Unilever acquired premium cosmetics brand Wild in April. It sells its products in its own retail channels and third-party stores.
The Anglo-Dutch group previously considered separating the entire food sector, generating 13.4 billion euros last year, earning annual revenue of 60.8 billion euros.
Fernandez has not ruled out the separation, but two major food brands, Herman’s and Knorr, which account for 60% of the division’s sales, have added margins, and say the food business is generally attractive.
Unilever previously spun the tea and margarine business. The company is preparing to spin-off its ice cream division as it has a Dutch list later this year.
