Unilever reduces packaging spend

by Jemima Bokaie, Marketing 23-Sep-08, 14:55

LONDON - Unilever, which owns Pot Noodle, Marmite and Hellmann's, is lowering its expenditure on packaging across its portfolio of food brands as part of a wider cost-cutting drive.

The FMCG firm has pared down the colour palette used for printing across more than 200 products, including Flora and I Can't Believe it's Not Butter, to six colours. Previously, it had used about 100 colours.

The new colour system, called Rainbow, has been developed by LFH, which was hired to review Unilever's packaging and identify where cost savings could be made across its food range.

The system has already been used to reduce printed packaging costs for Unilever's spreads and cooking products. It claims the system is also eco-friendly because it reduces waste in the printing process.

Matthew Daniels, foods best practice manager at Unilever, said: 'We are constantly striving to reduce complexity from the business and remove costs where possible, particularly in printed packaging.'

Unilever is performing poorly compared with rival Reckitt Benckiser, which posted a 22% rise in its operating profit for the three months to June. Unilever posted only a 6.8% rise in sales over the same period, achieved largely through price rises.