Specialist
Former EVP, PepsiCo & Lipton JV at Pepsi Lipton
Agenda
- Black tea market growth rates and drivers, threat of herbal teas and shift towards coffee consumption
- Unilever's (LON: ULVR) portfolio positioning
- Potential logistical carve-out of Unilever's tea business
- Opportunities to drive cost efficiencies
Questions
1.
How would you categorise the market and how do you think about market segmentation?
2.
How large is the global tea market, roughly?
3.
How would you break down the 60% of leaf tea by black tea vs speciality tea, such as herbal?
4.
You gave a rough guideline of the revenue share by country. Are there any percentages to indicate how large the Chinese and Japanese markets are compared to India, Russia, and the US?
5.
Where are the highest growth markets regionally and what are your expectations there?
6.
Why is RTD [ready-to-drink] expected to grow so much faster than leaf tea?
7.
When categorising the market by premium and super premium, does Pukka fit into mainstream, or does it sit at a price point above that?
8.
How would price points typically compare from premium down to value?
9.
What is a rough revenue split by region or by brand for the Unilever assets? Where do the key brands lie regionally?
10.
What are some of the historic challenges to Unilever's leaf tea business? It is well known that the company has struggled to grow this segment
11.
What has Unilever tried to do to grow the leaf tea segment historically, and why do you think it was unsuccessful?
12.
Do you think there is scope to enter into the luxury or premium market and expand its current product offering into green teas?
13.
Why is Unilever not present in the Chinese and Japanese markets, despite how big these markets are? How easy is it to enter into that market?
14.
Do you have a view of the key assets, functions or people that are critical to the business?
15.
Could you give an overview of the economics of the tea segment? Could you outline the typical EBITDA profile of the RTD and leaf tea categories?
16.
Where are the greatest EBITDA expansion opportunities? Are there any potential cost-saving opportunities?
17.
How easy is it to separate the tea business from the broader Unilever group?
18.
What are the core dissynergies from separating the tea business from the broader Unilever group?`
19.
Who do you think would be interested in purchasing the leaf tea assets of the business?
20.
What can a new owner bring to the leaf tea division that Unilever has not been able to achieve
21.
Why do you think Unilever is selling its business, given that Unilever is a major player globally? You speak quite positively about the growth potential of the market. Should it not be consolidating its position in the category?
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