Meeting everyday needs of people everywhere - Unilever

Operating review
Year 2000
We had no Y2K -related issues of any significance during
the millennium change. Our Y2 K teams tested critical
systems throughout the millennium weekend and
confirmed within 48 hours that all our business systems
around the world were operating normally.
The seamless way our people worked together
emphasised the strength and coherence of Unilever’s
global organisation. All aspects of our three-year Y2K
preparation programme were completed on schedule.
This included checking and, where necessary, upgrading
100 000 internal systems, verifying the millennium
readiness of almost 100 000 business partners and
infrastructure providers, and preparing detailed
contingency plans to protect against possible failures.
Unilever’s spend for the Y 2K programme amounted to
Fl. 670 million. This included all external costs, associated
depreciation on capital expenditure, and directly related
internal costs from 1996 to the completion of the
programme.
Technology and innovation
The popularity of iced tea continues to grow. Until now,
the main way to make it has been to boil water and then
allow it to cool. In 1999, our scientists found a way to
make the key elements of tea more soluble, allowing it
to be brewed with cold water straight from the tap. The
result was Lipton Cold Brew tea bags – a breakthrough
that saves the consumer time and effort when preparing
iced tea.
To develop Dove Nutrium skin nourishing body wash
we combined our expert knowledge of the chemistry
of product development and the physiology of skin.
The product is sold in an innovative twin-chamber bottle
which dispenses the cleansing and nourishing elements
separately, improving the deposition of nutrients to
the skin.
These two examples demonstrate the way we combine
world-class technology with deep consumer insight to
produce revolutionary new products that make a real
difference to people’s daily lives and set the agenda
for our competitors.
Based in six laboratories and over 70 innovation centres
around the world, our technology and innovation
capability is focused entirely on our business goals.
In Brazil, for example, the São Paulo innovation centre
worked with our European laboratories to reformulate
Omo. An ingredient was identified and added, making
this popular laundry brand more effective at removing oily
stains. This helped retain our leading market position and
attracted new consumers to the brand.
Technology is also used to reduce supply chain costs and
enhance performance. In India, ice cream distribution
costs were halved through a number of improvements,
including the development of insulated boxes for carriage
in hire trucks. These removed the need for dedicated
vehicle fleets which stay idle out of season.
In 1999, we invested further in extending the reach of
our international laboratories. For example, we expanded
the key technology teams in our new Indian facility in
Bangalore, completed a new Home & Personal Care
laboratory in China and began upgrading our food
science and nutrition facilities in Vlaardingen, in
the Netherlands.
Collaboration with external agencies is an integral part
of our research. In 1999, work started on the Unilever
Centre, a UK research facility which we are building in
partnership with the University of Cambridge. The Centre
is due to open in 2000.
In 1999 Unilever spent Fl. 2 060 million on technology
and innovation: 2.3% of our turnover. We filed 466
patent applications, an increase of more than a third
on last year.
Information technology
Hollywood hairstyle secrets were shared with our
consumers via the internet, courtesy of a ground-breaking
Unilever promotion.
Our Salon Selectives brand sponsored part of the hair and
beauty section of the America Online (AOL) Oscars night
web site. Tens of thousands of people logged on and
chose to register their details in a bid to win a Hollywoodstyle
beauty makeover. The result: consumers felt Salon
Selectives could relate to, and meet, their hair care needs,
the brand profile was raised and our online marketing
database was boosted significantly.
This initiative, co-ordinated by our New York Interactive
Brand Centre, is a prime example of how we are using
internet technology to get closer to consumers. In 2000
we announced a joint venture with iVillage, the leading
American online women’s site, to create an interactive
personal care business. We announced a similar
partnership with Wowgo, the new European online
company for teenage girls.