meeting everyday needs of people everywhere Annual ... - Unilever

38 Unilever Annual Review 1998 Categories
Turnover £ million
4 131
94
Operating profit £ million
467
94
4 477
95
446
95
4 710
96
368
96
4 462
97
343
97
4 437
98
348
98
Ice cream and beverages
£ million 1998 1998 1997 Change
at current at constant at constant
rates rates rates
Turnover 4 437 4 710 4 462 6%
Operating profit 348 368 343 7%
Operating profit before exceptional items 399 421 421 –
Overall, underlying volume in ice cream and beverages was flat. We
made progress in North America and Latin America but this was offset
by Europe, following the effect of the poor summer on ice cream sales.
Profits were also flat.
Ice cream Our worldwide ice cream turnover rose by 4%. This is
explained partly by price increases, due to higher raw material costs in
North America, and to the acquisition of Kibon in Brazil. Profits were
lower, mainly in Europe.
We had a good year in North America, where innovation and increased
marketing investment helped regain leadership of take-home, packaged
ice cream. We maintained our lead in the impulse-buy ice cream sector.
In Northern Europe, the poor summer hit sales and profits. This
emphasised the importance of our efforts to encourage people to eat
ice cream all year round. Winner Taco, our any-time ice cream snack,
was rolled out throughout Western Europe.
We continued to focus on, and develop, our global brands. New
variants of the Magnum brand, for example, included Magnum After
Dinner, which offers diners a ‘sweet indulgence’ rather than the fullsized
dessert. As part of our strategy of increasing brand awareness
among consumers around the world, we launched a common logo
for ice cream.
We celebrated a full year of operations with Kibon in Brazil. In
Australia, we opened a major new factory.
“The sales and profitability of our ready-to-drink teas
continue to increase. Last year, we expanded our
international portfolio further, with successful launches
in Brazil and Thailand...”
In the United States, our market-leading iced tea Lipton Brisk had a
record year. Backed by innovative marketing, it achieved a 16% rise
in volume, lifting Lipton’s share of the ready-to-drink market to an
all-time high.