Post by comlb on Mar 16, 2022 14:56:23 GMT
Unilever (UL) rarely gets over a 4% yield and it is currently at 4.5%. Since it is a Dutch-English company a bit less followed in US, but their products like Dove Soap, Hellman’s Mayo, Vaseline, Lipton tea, Knorr, and ahem Axe body spray, are well known. Another benefit that Unilever brings is an extensive presence in emerging markets where it earns 60% of its revenues.
from Lawrence A. Cunningham; Torkell T. Eide; Patrick Hargreaves. Quality Investing: Owning the best companies for the long term
”Unilever: Geographic Expansion
Unilever boasts a vast portfolio of personal care, home, food and refreshment brands distributed in 190 countries. The company derives almost 60% of revenues from emerging markets and has deep heritage in those locales, thanks partly to Britain’s historical influence over large swaths of the globe. Its geographic expansion continues today.
India is a good illustration. Since 1956, the minority shares of Unilever’s Indian subsidiary, Hindustan Unilever (HUL), have been traded on India’s stock exchanges. Sunlight soap was introduced there in 1888, with several other brands launched over the next 20 years. The combination of longevity and local management means that such brands are considered home-grown. Such affinity is a huge advantage over relative newcomer brands from other multinational companies.
Unilever’s longevity has enabled high market share and allowed the company to develop an advantaged distribution system, a fact local competitors concede. HUL has direct coverage of more than three million outlets in India. Far surpassing any rival, it distributes an estimated two-thirds of its products directly to retailers, skipping the wholesaler. In addition, the company launched its Shakti program in 2001 designed to promote business in rural India while extending HUL’s distribution reach. The company boasts a sales network numbering more than 70,000 Shakti Amma (women) and 48,000 Shaktimaan (men) distributing Unilever products into rural villages – a huge sales force even for a country of India’s continental scale.
The benefits of such a powerful distribution network are many. As well as delivering higher market share in less developed rural regions, it allows for a quick and astute read of consumer demand and preferences. Additionally, the company is able to launch new products faster and more broadly than its peers, leveraging its existing cost base more effectively. Success is evidenced by HUL’s continued market share gains in India.
Beyond India, Unilever has been present in South Africa since 1891, Argentina since 1892, Thailand since 1908 and numerous other countries since the 1930s. By 1910, it had sourcing operations as far afield as the Pacific and West Africa. In terms of distribution, Unilever has matched, or is working to replicate, its Indian position in other markets from the outer reaches of Indonesia to sub-Saharan Africa. Even in these markets where networks are still expanding, the company’s reach is impressive: Unilever’s distribution network in Indonesia is bigger than that of the Indonesian postal system.”
from Lawrence A. Cunningham; Torkell T. Eide; Patrick Hargreaves. Quality Investing: Owning the best companies for the long term
”Unilever: Geographic Expansion
Unilever boasts a vast portfolio of personal care, home, food and refreshment brands distributed in 190 countries. The company derives almost 60% of revenues from emerging markets and has deep heritage in those locales, thanks partly to Britain’s historical influence over large swaths of the globe. Its geographic expansion continues today.
India is a good illustration. Since 1956, the minority shares of Unilever’s Indian subsidiary, Hindustan Unilever (HUL), have been traded on India’s stock exchanges. Sunlight soap was introduced there in 1888, with several other brands launched over the next 20 years. The combination of longevity and local management means that such brands are considered home-grown. Such affinity is a huge advantage over relative newcomer brands from other multinational companies.
Unilever’s longevity has enabled high market share and allowed the company to develop an advantaged distribution system, a fact local competitors concede. HUL has direct coverage of more than three million outlets in India. Far surpassing any rival, it distributes an estimated two-thirds of its products directly to retailers, skipping the wholesaler. In addition, the company launched its Shakti program in 2001 designed to promote business in rural India while extending HUL’s distribution reach. The company boasts a sales network numbering more than 70,000 Shakti Amma (women) and 48,000 Shaktimaan (men) distributing Unilever products into rural villages – a huge sales force even for a country of India’s continental scale.
The benefits of such a powerful distribution network are many. As well as delivering higher market share in less developed rural regions, it allows for a quick and astute read of consumer demand and preferences. Additionally, the company is able to launch new products faster and more broadly than its peers, leveraging its existing cost base more effectively. Success is evidenced by HUL’s continued market share gains in India.
Beyond India, Unilever has been present in South Africa since 1891, Argentina since 1892, Thailand since 1908 and numerous other countries since the 1930s. By 1910, it had sourcing operations as far afield as the Pacific and West Africa. In terms of distribution, Unilever has matched, or is working to replicate, its Indian position in other markets from the outer reaches of Indonesia to sub-Saharan Africa. Even in these markets where networks are still expanding, the company’s reach is impressive: Unilever’s distribution network in Indonesia is bigger than that of the Indonesian postal system.”