GHANA – Unilever Ghana Plc has addressed recent reports suggesting that the relocation of its Lipton tea production line to Nigeria was due to unfavourable business conditions in Ghana.
The company clarified that the halt in tea production is part of a global strategy to transfer operations to its Nigerian subsidiary, Ekaterra, and is not related to Ghana’s macro-economic challenges.
In recent years, several multinational companies have exited Ghana over economic and profitability concerns, leading to speculation about Unilever Ghana’s operations.
Unilever Ghana, one of the country’s longest-operating fast-moving consumer goods companies, was mentioned in this context following the suspension of its Lipton tea production line.
However, Chris Wulff-Caesar, Managing Director of Unilever Ghana, emphasized that the decision is part of a broader global strategy to optimize operations and leverage the strengths of its subsidiaries.
“Certain decisions are taken at the global level, which sometimes impact us,” Wulff-Caesar explained.
He noted that in 2019, Unilever Ghana had to transfer its oils and spreads business to another company, Upfield, as part of a similar strategic move.
Lipton Teas and Infusions Plant-Based Ltd Nigeria, formerly known as Ekaterra Plant Based Ltd Nigeria, is now responsible for Unilever’s tea operations within the sub-region.
Wulff-Caesar assured that Ghana remains a significant market for Unilever, highlighting continuous investments in manufacturing, product research, and marketing activities.
He pointed out that Unilever Ghana, which directly employs about 700 personnel, is deeply ingrained in the Ghanaian economy and has no intention of exiting the country.
“We have been here for over 100 years and have never shirked away from our responsibility, playing our part in the development of the economy of Ghana,” he stated.
The clarification comes at a time when Lipton Teas and Infusions recently divested all its tea estates in Kenya, Rwanda, and Tanzania to Browns Investments, a subsidiary of Sri Lanka’s LOLC Holdings.
As part of this deal, the communities in Bomet and Kericho, where the tea estates are located, will receive a 15 percent stake in the newly acquired company.
Lipton Kenya Estates consists of 11 plantations and eight factories distributed across Bomet, Kericho, and Kiambu counties.
These developments follow the acquisition of Lipton Tea’s assets by European private equity firm CVC Capital Partners from Unilever over three years ago.
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