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2022: Termination of activities in Russia amid conflict in Ukraine
In July 2022, the Ekaterra tea company (brands Lipton, Saito and Brooke Bond) decided to terminate its activities in Russia, amid the ongoing conflict in Ukraine and the subsequent sanctions from the United States and its satellite countries.
2021: CVC Capital Partner bought Ekaterra
Unilever sold its tea business, including the Lipton and Brooke Bond brands, for €4.5 billion. The company announced this on November 19, 2021.
The new owner of the Ekaterra division and its brands will be the fund of a consulting company CVC Capital Partners - a former investor antivirus Avast and manufacturer of Samsonite suitcases and bags. It is assumed that the completion of the transaction will take place in the second half of 2022.
However, the sale of the division will not affect Unilever's tea business in India, Nepal and Indonesia, nor will it affect a stake in its joint venture with PepsiCo. By November 2021, Ekaterra owns 34 tea brands, including Lipton, Brooke Bond, PG Tips and Lyons. In 2020, Ekaterra's revenue amounted to about €2 billion.
Unilever shares have fallen 13% since the beginning of 2021 by the time the deal with CVC Capital Partners was announced, Bloomberg reported. It called the sale of the tea business "an extremely desirable" victory for the company's CEO Alan Jope. It seeks to restructure Unilever's brand portfolio and update it to current consumer demands, the agency explained.
 | The evolution of our brand portfolio towards higher growth segments is part of the company's strategy for further development. Our decision to sell the tea business suggests that we are moving in this direction, - said the head of Unilever Alan Jope. |  |
In turn, the managing partner of CVC Capital Partners Pev Hooper believes that the company's tea business "occupies a good position in the market, where it is possible to accelerate growth in the future. We hope to realize the full potential of Ekaterra. "
Previously, Unilever talked about declining sales of black tea. Analysts attribute this trend to the growing popularity of coffee. [1]
Notes
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