Unilever Streamlines; Aim Is Emerging Regions

Unilever Streamlines; Aim Is Emerging Regions

Unilever Streamlines; Aim Is Emerging Regions

Unilever NV said Thursday it is streamlining its management structure, in moves that further its strategy of focusing on developing markets and promoting executives with experience in those territories.

After years of many restructurings that failed to produce better results, the maker of Dove soap, Lipton tea and Ben & Jerry's ice cream, among other products, is now showing signs of progress.

The company, which has headquarters in London and Rotterdam, said its Central and Eastern Europe division will be incorporated into an enlarged Asia, Africa and Central and Eastern Europe unit. The move centralizes management of emerging economies that share similar consumer traits and potential for growth. Central and Eastern Europe had previously been lumped in with Western Europe, a mature market crowded with competitors.

Unilever also is combining its home and personal-care and foods units into a single division as a part of the company's continuing effort to raise its profitability by becoming leaner and more nimble.

For years, Unilever has been outperformed by rivals like Procte & Gamble Co., which have been more creative in introducing new products. Rather than simply redouble efforts in North America and Europe, Unilever Chief Executive Patrick Cescau has redrawn the company's world map to focus on emerging markets. As a result, Unilever has moved faster than competitors in transferring management and staff to the new locales. Emerging markets account for about 44% of the company's sales.