Unilever plans to sell Skippy peanut butter brand

British-Dutch multinational company Unilever is planning to sell the Skippy peanut butter brand, as part of its efforts to cut down some of its food assets and focus more on personal care products.

The sale of the brand is likely to fetch $300m to $400m, reported Bloomberg, citing two people familiar with the matter.

The firm has appointed Lazard to look for potential buyers.

Skippy posted revenue of $300m and had an 18.1% share in the US peanut butter market in 2011.

Unilever spokeswoman Anita Larsen told Bloomberg that as part of a recently completed strategic review, the company has decided to explore various options for the Skippy business, which includes a potential sale.

In the US peanut butter market the Skippy brand, established in 1933, faces tough competition from J.M. Smucker’s Jif, which sells variants containing lower sodium and reduced fat.

Unilever’s food business contributed 30% to the company’s total sales in 2011 and about half of it was generated from Europe, where sales have declined as a result of challenging economic conditions.

The food business sells brands such as Hellmann’s mayonnaise and Ragu pasta sauce, but does not include its ice cream and tea brands, which come under the refreshments division.

In 2011, the food business was the only segment to post a drop in sales in terms of volume.

Unilever has been positioning itself more as a personal care company than a food company and has divested various brands in recent years.

In 2010, it sold food businesses in Italy, Brazil and the US and recently, in August 2012, the company closed the sale of its North American frozen meals division to US-based ConAgra Foods in an all cash deal of $267m.

---

Image: A sale of the Skippy brand would be another step in Unilever’s re-positioning as a personal care company. Photo courtesy of Unilever.