Unilever settles South Africa competition case, opens new factory in Colombia
SOUTH AFRICA – Unilever South Africa, a multinational consumer packaged goods company, and the South African Competition regulator commission have reached an over the alleged market division of margarine.
The global consumer goods giant agreed to an R16 million (US$0.89m) administrative penalty and to provide interest-free loans to qualifying black businesses.
In 2017, the commission referred a case against Unilever and Malaysia’s Sime Darby Hudson Knight for prosecution over possible division of markets between 2004 and 2013.
The commission’s investigation found that the two companies agreed not to compete with each other in respect of certain pack sizes of margarine and edible oils.
At the time, the commission, which acts as an investigating and prosecuting body, said when Unilever sold its refinery business to Sime Darby in 2004 the parties had reached agreements, including that Unilever would not supply industrial customers with its Flora-branded edible oils.
Among other agreements, Sime Darby agreed to not supply retail customers with its Crispa-branded edible oils. Sime Darby settled the matter with the commission in July 2016.
The commission said on Thursday in terms of its settlement agreement with Unilever, the company agreed to the administrative penalty without an admission of liability. The settlement is still subject to approval from the Competition Tribunal, which serves as a court.
In addition, Unilever has agreed to a range of initiatives, including that it will increase the annual value of its procurement of products and services from local entities by a minimum of R340 million over a period of four years.
Unilever opens food factory in Colombia
Meanwhile, the British-Dutch multinational company has opened a factory in Colombia for local food brands Fruco and Del Huerto.
“The newly-built factory will make dressings sold under the Fruco and Del Huerto brands. By centralising our operations in Palmira, we can improve logistical efficiency, optimize our supply chain, and strengthen our ability to respond to local market demands,” Unilever said.
The hub is the fourth-largest Unilever production centre in Latin America. It employs 1,200 people and supplies customers in Colombia and 16 other countries in Latin America. Unilever LATAM’s food division owns 13 brands including Hellmann’s, Knorr, Cica and Fanacoa.
Last August, Unilever invested in two Mexican food plants to increase production capacity to supply the local and international markets.
Earlier this year, Unilever East Africa launched a Sh500 million warehouse facility that was designed to flexibly handle high-mix, health, and beauty products across East Africa.
The 23,000-square-meter facility was equipped with automated storage and retrieval systems with a greater pallet capacity, enabling the company to store, process, and ship its products efficiently.
For all the latest food industry news from Africa and the World, subscribe to our NEWSLETTER, follow us on Twitter and LinkedIn, like us on Facebook and subscribe to our YouTube channel.
