Unilever Brexits To Holland

The Laughing Profiteer?

The Laughing Cavalier was Dutch, so it seems correct that The Marmite Profiteer is off to Holland. The last time Unilever tested the axiom, “There is no such thing as bad publicity” was when it raised the cost of Marmite by 10% after Brexit. Now it would appear Brexit has had the last laugh, despite the denials.

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To Holland With Dove

Just as one might expect, the media is delighting in news that Dove to Marmite maker, Unilever, has announced it is heading off to the Land of the Clog. This development has been given the “I told you so!” treatment in terms of the Brexit aftermath. But it may be a case of Good Riddance! and perhaps, Good Luck!

unilever

Potted History

Ironically enough at a time when many of us should be more health-conscious in terms of our dietary input, it is interesting that the bulk of the company’s fayre consists of ultra high processed food, of which the pinnacle of haute cuisine is of course Pot Noodle. Certainly, this is the case if one at least eliminates the PG Tips, which were actively promoted as a tea loved by chimpanzees.

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8 Figure Salary

But looking through the recent news flow of the Anglo Dutch giant, one can see that it seems to be somewhat cash strapped and therefore an element of leaving the UK must be down to cost saving. This is over and above the fact that the CEO takes home over £10 million a year, which is an eye watering figure in anyone’s book, and perhaps the Great British Public are starting to eat less prepared food.

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Rejection

As stated at the time, it was an error for Unilever to reject the £143bn Kraft Heinz offer, so now rather than heading off to processed food heaven, Unilever is heading off to Amsterdam. Once again one wonders how much of the rejection their was done in the interests of the management, and how much for the shareholders? What can be said is that this is no great Brexit thumbs down (it will only happen in name, if at all), this is just a sleeping giant multinational shuffling off with its tail between its legs, trying to cut costs.

Author: Zak Mir

Financial commentator, interviewer, technical analyst

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