Transcript
Nina de Roy
Let's talk about one of the biggest companies out here in Europe: Unilever. It's the world's second-biggest maker of consumer products. It's reported its steepest revenue increase in about five years. All of this is thanks, in part, to demand from emerging markets. It's selling more shampoo in Asia and Africa. This week, the company recently agreed to buy the Russian ice cream maker Inmarko. That was to tap growth in a country where the economy's expanding faster than here in Western Europe. Earlier today, Francine Lacqua got the chance to catch up with Unilever's CEO, Patrick Cescau. She began by asking him about the logic behind that Inmarko acquisition.
Patrick Cescau
Russia is an important market for us. We grew double-digit, high double-digit, in 2007. This is a priority. Inmarko is a great acquisition, the number one ice cream producer in Russia. We can bring, because of our global position in ice cream (we are the number one worldwide), we can bring technology, branding, we can bring quality products and innovation. This acquisition will strengthen our global position in ice cream and give us more exposure to what is one of the most vibrant markets. Further, we've said we'd continue to look at opportunities to make acquisitions, what are called bold-on acquisitions (acquisitions we can finance ourselves, not make a big acquisition), to strengthen the evolution of our portfolio, and again, more in developing an emerging market which is, as you know, a key priority for us.
Francine Lacqua
What type of company would you be looking at? In what product sector? Is there anything specific that you want to grow in?
Patrick Cescau
Well, I'll focus on sectors. Cleary, we are looking for companies in sectors which we know where, in categories where we already operate: personal care, food, with emphasis on vitality. They're the sort of areas we're interested in.
Francine Lacqua
What about India, because Procter & Gamble is also taking market share in India considerably. Are you focusing on India as another possible, maybe, acquisition target, or anything that will put you ahead of your competitor?
Patrick Cescau
I have to be careful in the answer, because India has not yet announced their results of quoted company. We are satisfied with our share development in 2007, and I'm going to be very clear, at the end of quarter three. We feel very good about our progress in laundry, which has been under pressure. We've gained share, actually. A bit soft in share in hair care, but nothing that I would be worried about. India is and remains a top priority for big business, vibrant business, and I'm very confident that this will continue.
Nina de Roy
Patrick Cescau there, the CEO of Unilever, on a day when Unilever had its best sales in about five years. He was talking to Francine Lacqua there about the outlook for some of those developing markets like India.
