Consumer packaged foods firm Unilever has decided to sell the bulk of its global tea business, including iconic brands like Lipton and PG Tips, following the completion of a strategic review launched this January, the company said in its recently released report on its first half year results for 2020.
“The balance of Unilever’s tea brands and geographies and all tea estates have an exciting future, and this potential can best be achieved as a separate entity,” Unilever wrote in the report. “A process will now begin to implement the separation.”
While it will part ways with many of the assets related to the business, Unilever plans to hold on to its tea businesses in India and Indonesia, as well as its partnership interests in ready-to-drink tea joint ventures.
Unilever expects to sell the business by end of next year.
Slipping sales of traditional black tea contributed to the initiation of the strategic review, the company said in January. A Unilever official told the Financial Times that black tea sales have declined steadily over the last four years, especially in west Africa, India, and the Middle East.