Unilever Recalls Pints of Ice Cream - Analyst Blog
June 14 2012 - 1:08PM
Zacks
Unilever Plc (UL) recently announced that it is
voluntarily recalling pints of its Ben & Jerry’s Chocolate
Nougat Crunch Ice Cream as the product label did not include the
required allergic precautionary statement.
Unilever had sold the recalled product to its retailers across
the U.S., but the company believes that the recall does not include
2.4 gallon containers of chocolate nougat crunch served at Ben
& Jerry's franchised Scoop Shops. The company has warned
consumers not to consume the product and return the items to the
store from where it was purchased, as it can be hazardous for
people who are allergic to peanuts or tree nuts which include
chestnuts, Brazil nuts, walnuts, hazelnuts, pecans, pine nuts and
cashews. However, there have been no complaints made with respect
to the product and thus we believe the recall will not have any
material impact on the company’s earnings.
Besides Ben & Jerry’s ice-creams, Unilever has a wide
portfolio of globally recognized flagship brands, such as Axe/Lynx,
Lipton, Blue Band, Knorr, Dove, Lux, Flora/Becel, Heartbrand, Omo,
Rexona and Sunsilk, which provide a dominant position to the
company in the sector. The company continues to introduce new
brands, enhance them, and launch these brands in new emerging
markets.
Additionally, the company has been strengthening its portfolio
by expanding in international markets through acquisitions. With
the acquisition of the Personal Care business of Sara Lee
Corporation (SLE) in the fourth quarter of 2010, Unilever
added leading brands like Radox, Duschdas and Neutral to the
company's portfolio in Western Europe. In addition, Unilever
acquired Chicago-based Alberto Culver in May 2011 and controlled
82% ownership in the Russian brand of Concern Kalina in December
2011.
However, the company faces continued input cost headwinds and a
difficult macro-economic environment which shows no signs of
near-term abatement. We therefore remain Neutral on the stock. The
stock also carries a Zacks #3 Rank in the near term (‘Hold’
rating).
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