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Unilever: Products
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Unilever started using GMOs in its food products in a very early stage, even before proper regulation (e.g. on labeling) got off the ground, let alone a public debate (proper regulation is still not in place). Unilever took a leading role in the promotion of genetically engineered food (Unilever introduced ‘Bachelors Beanfeast’ into the UK, one of the first food products containing GMOs). After the quick introduction of GMOs in its foodstuffs, Unilever could claim there was no turning back. It would be impossible to separate GMOs from GM-free organisms. Zoe Elford of the Genetic Engineering Network once (1998) put it like this: ‘Unilever is basically forcing genefoods down consumer’s throats.
There was, in fact, coherence to Unilever that rested on at least five corporate strengths. Unilever possessed, first, strong capabilities in branding and marketing. It understood local markets, and it knew how to market to them. It was at the frontier of market segmentation strategies in packaged consumer products. It opened up new product categories in deodorants and household cleaners. Unilever's brands were not strong enough to prevent the growth of private labels in Europe, but they were sufficient to maintain Unilever's strong position in higher margin products.
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In 1991 Unilever continued to battle with rival Procter & Gamble over the newly opened markets of the former Soviet Union. Unilever purchased an 80 percent stake in the Polish detergent firm Pollena Bydgoscz for $20 million, changing the name to Lever Polska, the first laundry detergent manufacturer to be privatized in Poland. The company earmarked approximately $24 million for product line expansions, including a fabric conditioner and household cleaning products. Also in 1991 Michael Perry was named the U.K. cochairman of Unilever.
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In February, 2002 Unilever recalled 4 million teddy bears it had sent out to promote its Snuggle brand fabric softener in the US over fears that small children could choke on parts of them. The recall came after the US Consumer Product Safety Commission said there had been 32 reports of the eyes and noses coming off the bears... no injuries were reported. The bears, which were made in China, had been given away or sent to consumers between May 1997 and December 2001.
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The organizational complexity was compounded by Unilever's wide portfolio of products and by the changes in these products over time. Edible fats, such as margarine, and soap and detergents were the historical origins of Unilever's business, but decades of diversification resulted in other activities. By the 1950s, Unilever manufactured convenience foods, such as frozen foods and soup, ice cream, meat products, and tea and other drinks. It manufactured personal care products, including toothpaste, shampoo, hairsprays, and deodorants. The oils and fats business ... led Unilever into specialty chemicals and animal feeds. In Europe, its food business spanned all stages of the industry, from fishing fleets to retail shops.
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In March 2004, senior management at Unilever demanded handheld mobile devices for the company's top 1,000 executives to increase their productivity. For Tony Farah, director of global solutions, this project posed major headaches; Unilever, a $54 billion manufacturer and supplier of consumer goods, operates in 57 countries and has executive teams spread across Europe, North America, Latin America, Asia, Africa and the Middle East.
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