Unilever N.V. (AMS:UNA)’s Slim-Fast Surviving Its Last Breath - K & RB

Northern, WI 1/16/2013 (avauncer) - Unilever N.V. (AMS:UNA) had been a leader in $13 billion weight-management sector with Slim-Fast. But today it stands nowhere in front of Kellogg Company (NYSE:K). However the other two brands of Unilever N.V. (AMS: UNA) Dove personal care and Magnum ice cream  have been re-energized since Paul Polman has taken over as Chief  Executive Officer since 2009.

Even with the growing trend of global meal-replacement category with 27 percent, the Slim-Fast’s sale in U.S over the last four years has reduced by 40 percent to $196 million.

Kellogg Company (NYSE:K) now the biggest U.S. cereal maker timed it well to launch new products when the Slim-fast was losing its hold in the market. This has increased the sales of Kellogg’s by about 22 percent over past five years.

Slim-Fast contributes to less than 1 percent of Unilever’s annual sales of about $67 billion and it has already been pulled out of France. With Slim-Fast as compared to 77 newly introduced items in 2005 has brought in only 7 items last year. This is mainly because of the consumers who are opting for a systematic diet lifestyle having increased as compared to people opting for crash diets. Slim-Fast has been also been accused of fake flavoring and not being digital. Slim –Fast has also been ranked last in the do-it -yourself diet plans.

Slim-Fast was created by S. Daniel Abraham in 1977. In the year 1999 with sales of $611 million and a profit of about $125 million, Slim-Fast was bought by Unilever for $2.4 billion

The decline in the sales of about 21 percent of Slim-Fast was seen from 2003and it continued up to 2009 , where Slim-Fast experienced a huge loss after recalling its ready-to-drink products suspected of bacterial contamination. With the shrinking sales of Slim-Fast the company is planning to sell off orphan products which have been a burden to the company and not worth the amount they had been purchased for. It is expected that England’s Reckitt Benckiser Group PLC. (RB) is one of the strong contender for purchase of Slim-Fast.

S. Daniel Abraham the creator contenders Fast the purchase with the Unilever management of Slim-Fast products and market reputation.

Shares of Unilever N.V. (AMS:UNA) were up by 0.91% to close at €29.24

Shares of Kellogg Company (NYSE:K) were down by 0.45% to close at $57.12

Shares of Reckitt Benckiser Group PLC (LON:RB) were up by 0.10% to close at £4,032.00