Upfield (company)

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Upfield Holdings B.V.
TypeBesloten vennootschap
IndustryConsumer goods
Predecessors
Founded2018; 4 years ago (2018) (by spin-off)
Founders
Headquarters
Rotterdam
,
The Netherlands
Area served
Worldwide
Key people
David Haines, CEO
ProductsMargarines, spreads
OwnerKKR
Websitewww.upfield.com

Upfield Holdings B.V. is a global company owning multiple brands of margarine, food spreads, and plant-based foods, including Flora and Blue Band. It is the largest plant-based consumer packaged goods company in the world, operating in 95 countries,[1]

Upfield was spun off from Unilever and purchased by investment firm KKR in 2018 for $8.04 billion.[2]

History[]

Margarine was one of the first products sold by the company that would become known as Unilever.[3] Antoon Jurgens of Oss, Netherlands, acquired the patent for making margarine from its inventor Hippolyte Mège-Mouriès in 1871.[4] Through a series of mergers Jurgens' company became Margarine Unie in 1927 and then Unilever in 1929.[5] Since that time, Unilever has added other margarine and food spread brands.

Although the food spreads division of Unilever maintained a robust profit margin, in the 21st century sales declined as many consumers switched to traditional dairy butter. In the five years leading to 2014, sales of margarine fell 6% while sales of butter rose 7%.[6]

Following a February 2017 takeover attempt by Kraft Heinz, Unilever chief executive Paul Polman made a pledge to investors to boost returns. In April of the same year, Unilever put the margarine and spreads division up for sale with the intention of returning the net cash from the sale to shareholders.[7]

The sale sparked a bidding war among buyout firms including Apollo Global Management, CVC Capital Partners, Clayton, Dubilier & Rice, and Bain Capital. According to Bloomberg, it was the biggest-leveraged buyout in Europe in 2017.[3] In December 2017, Unilever accepted an offer of €6.8bn from investment firm KKR. The purchase, which was completed in July 2018, was funded by European and North American private equity funds that are under KKR's control.[8] The brands in the sale represented about 7% of Unilever's global business.[9]

In January 2020 they purchased Violife, a brand of plant-based cheese.[10]

Owing to falling margarine sales as consumers switched back to butter, since summer 2020, the company has repositioned itself to tap into the "plant-based" market, along with a sustainability push to increase sales.[11] The Group also announced it would invest €50 million in a facility for research and development on plant-based products, to be opened at the end of 2021.[12]

Products and operations[]

Upfield's notable brands include:[13]

In southern Africa, Remgro-owned Siqalo Foods has the rights to produce several of these brands, instead of Upfield.

David Haines, non-executive director of Tobacco company Imperial Brands, was appointed CEO in July 2018.[14] As of August 2018, other members of the executive board include Detlef Schmitz (General Counsel), Gerry Mulvin (Transformation Office/M&A), Afzaal Malik (Corporate Affairs), Jesper Andersen (CFO), Gordon von Bretten (Interim COO), John Verbakel (Chief R&D Officer), and Eve Baldwin (Chief HR Officer).[1]

After Upfield was spun off from Unilever in 2018, decision was made to close the Purfleet-on-Thames factory, 200 employees were made redundant.[15] Underperformance and exceeding costs were determined to be the reason for the closing of the factory.

In June 2020 it was made public that Upfield were to offshore its factory in Helsingborg, Sweden.[16] In total 80 employees were notified of termination. The product portfolio consisting of cheese & dairy products are set to move to a factory in Kleve, Germany. The move is scheduled to be complete in February 2021.[17]

In March 2021 Upfield announced that the factory in Rotterdam will close its doors mid 2022.[18]

In November 2021 Upfield buys the Unilever's production factory in Cali, Colombia to improve its operations in South America with it's products Rama, Violife and Blue Band.[19]

The UK version of Flora Buttery now contains buttermilk, so it is no longer vegan, although other Flora products still are.[20]

References[]

  1. ^ a b "Upfield". www.upfield.com. Retrieved 28 August 2018.
  2. ^ Roumeliotis, Greg (2017-12-16). "Unilever to sell spreads business to KKR for $8 billion". Reuters. Retrieved 2021-06-15.
  3. ^ a b Buckley, Thomas (15 December 2017). "Unilever Sells Spreads Business to KKR for $8.1 Billion". Bloomberg.com. Retrieved 28 August 2018.
  4. ^ Rupp, Rebecca (13 August 2014). "The Butter Wars: When Margarine Was Pink". www.nationalgeographic.com. Retrieved 28 August 2018.
  5. ^ "Our history". Unilever global company website. Retrieved 28 August 2018.
  6. ^ Coxall, Malcolm (20 February 2014). Ethical Eating: A Complete Guide to Sustainable Food. Cornelio Books. p. 58. ISBN 978-84-941783-1-3.
  7. ^ Roumeliotis, Greg (15 December 2017). "Unilever to sell spreads business to KKR for $8 billion". U.S. Retrieved 28 August 2018.
  8. ^ Devlin, Edward (15 December 2017). "KKR snaps up Unilever spreads division for £6bn". TheGrocer.co.uk. Retrieved 28 August 2018.
  9. ^ Treanor, Jill (15 December 2017). "Unilever sells household name spreads to KKR for £6bn". The Guardian. Retrieved 28 August 2018.
  10. ^ "UPFIELD GROUP B.V. CLOSES PURCHASE OF ARIVIA". Violife Foods. 2020-01-16. Retrieved 2021-05-13.
  11. ^ Evans, Judith (6 July 2020). "Flora maker looks to spread virtue of margarine in vegan shift". Financial Times.{{cite web}}: CS1 maint: url-status (link)
  12. ^ White, Martin (12 June 2020). "Upfield invests 50m euros into new plant-based R&D facility". Foodbev.{{cite web}}: CS1 maint: url-status (link)
  13. ^ "Our Brands". www.upfield.com. Retrieved 25 March 2021.
  14. ^ "Imperial Brands director David Haines leaves for Upfield gig, 4 Jul 2018 13:10 | Shares Magazine". www.sharesmagazine.co.uk. 10 July 2018. Retrieved 28 August 2018.
  15. ^ Speight, Neil (January 18, 2019). "200 jobs set to go as spreads factory in Purfleet is earmarked for closure".
  16. ^ "Helsingborgsföretag flyttar verksamhet utomlands". HD.
  17. ^ Brulin, Gunnar (June 30, 2020). "Upfield i Helsingborg varslar 80 anställda".
  18. ^ "Margarine factory Upfield closes doors in Rotterdam: 150 jobs at risk | Financial". 18 March 2021.
  19. ^ "La producción de las margarinas Rama cambiará de dueño". 18 November 2021.
  20. ^ "Flora Adds Dairy Buttermilk Back Into Vegan Buttery Spread in UK". VegNews.com.

External links[]

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