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Unilever's £34billion Brand Value Proves Sustainable Capitalism Works

Wednesday, March 22, 2017

 

 

Valuation dwarves £16billion Kraft/Heinz who recently launched huge takeover bid.

Unilever’s brand value of £34billion proves the company’s brand of “sustainable capitalism” pays, says GMB.

The valuation is twice that of Kraft/Heinz - £16billion [1] – who recently launched a botched takeover for Unilver.

The company fought off the £115 billion bid [2], which was driven by private equity investor ‘sharks’ 3G Capital.

Following the bid, Unilever’s share price plunged 7% and the company released an opaque message to the press citing the need for “a comprehensive review of options available to accelerate delivery of value for the benefit of our shareholders”.

Unilever has a proven track record of investment, decent pensions, good working conditions and recognising trade unions like GMB - and their current model is supported by 47% of key shareholders according to a recent survey. [3]

This week GMB wrote to Unilever investors urging them to stop the company embarking on drastic cost cutting measures. [4]

Eamon O’Hearn, GMB National Officer, said:

“The fact Unilver’s brand value is twice that of Kraft Heinz proves sustainable capitalism can make profits for shareholders.

”Companies like Unilever, with a reputation for treating staff with respect, don’t need to embark on slash and burn missions just to maintain margins.

“This is more proof – if it were needed – that treating workers well and recognising trade unions go hand in hand with good business.”

ENDS

Contact: GMB press office on 07958 156846 or press.office@gmb.org.uk

[1] Unilever ranked at more than twice the value of KraftHeinz

By Louis Gore-Langton 21-Mar-2017

Nestlé is the most valuable company in the world in terms of its corporate value and collective brand value while Unilever's total brand portfolio is over double that of KraftHeinz, according to a report.

Read more: http://mobile.foodnavigator.com/Business/Unilever-ranked-at-more-than-twice-the-value-of-KraftHeinz?utm_source=newsletter_daily&utm_medium=email&utm_campaign=21-Mar-2017&c=n1Tw%2BCPEv24bxzjBhiYR4qMvoNuHqCi6&p2=

[2] Kraft Heinz withdraws Unilever takeover bid

February 19 2017

US food giant pulls out of merger talks in a surprise turn of events with both companies jointly announcing ‘no deal’

Read more: https://www.theguardian.com/business/2017/feb/19/kraft-heinz-unilever-shareholders-lobbies-uk-government-takeoverbid

[3] Unilever is exploring a £6bn sale of spreads brands such as Flora and Stork after Kraft Heinz deal collapse

19 March 2017 2:12pm

Unilever is exploring the sale of some of its most iconic brands after coming under shareholder pressure over a $143bn takeover bid from Kraft Heinz.

Read more: http://www.cityam.com/261225/unilever-exploring-6bn-sale-spreads-brands-such-flora-and

[4]  Unilever 'Must Not Go Down 'Slash And Burn Route'

Monday, March 20, 2017 

Union pens letter amid fears botched Kraft Heinz takeover will scare directors into abandoning workers’ rights.

Read more: http://www.gmb.org.uk/newsroom/unilever-slash-burn

Previous press release

Unilever Must Reassure Workers Following Failed Takeover

Wednesday, March 1, 2017

Company fought off threat of massive takeover – but spectre of ‘comprehensive review …to accelerate value for benefit of shareholders’ still looms.

Read more: http://www.gmb.org.uk/newsroom/unilever-reassure-workers

 

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