There is an economic problem with margarine

 


There is an economic problem with margarine. Sales are down, profits are down. Good news from where I stand but bad for the shareholders of Unilever.

Unilever is one of the worlds biggest ‘food product’ manufacturers – notice the careful wording. Their margarine industry is on the back foot with declining sales and butter taking over.

If the biggest manufacturer of margarine in the world is looking for an exit strategy, then you know there is a problem.

No need to wait for government and Heart Foundation guidelines to change. The buying power of the consumer looking for healthier options is making the difference.

“Unilever said it wasn’t “able to stem the sustained market contraction in developed countries” in the margarine business.”

” A big part of the problem for margarine is the revival of butter after decades of being held up as the culprit for clogged arteries and expanding waistlines.

Consumers have come to see it as more wholesome and natural than margarine. Last year, unit sales of butter and butter blends in the U.S. climbed 4.2% from a year earlier while sales of margarine plummeted 8.9%.”

Keep up the good work people.

http://www.wsj.com/articles/unilever-profit-falls-after-year-earlier-gains-1453188371

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