Unilever offloads Home Care portfolio in Colombia and Ecuador
Key takeaways
- Unilever is selling its Home Care business in Colombia and Ecuador to Alicorp, including brands like Fab, 3D, Aromatel, and Deja.
- The sale aligns with Unilever’s strategy to optimize its portfolio by focusing on high-growth, sustainable categories.
- Alicorp strengthens its presence in Latin America by acquiring these established home care brands, boosting its market position.
Unilever has signed an agreement to sell its Home Care business in Colombia and Ecuador to Alicorp, the largest Peruvian consumer goods company.
The transaction includes a portfolio of established local brands in Colombia and Ecuador, such as Fab, 3D, Aromatel, and Deja.
The deal is part of Unilever’s global strategy to optimize and focus its portfolio on categories and markets where it sees the strongest competitive advantages and growth opportunities. This is causing the company to divest in segments that don’t align with its long‑term focus.
“While this was a thoughtful decision, it aligns with our ambition to sharpen our portfolio and focus on the categories where we can lead, innovate, and grow sustainably,” says Reginaldo Ecclissato, President of 1 Unilever Markets at Unilever.
Earlier this month, Unilever’s pivot away from slower-growth legacy products also led it to sell its SariWangi tea business in Indonesia to PT Savoria Kreasi Rasa, a fast-growing local FMCG group, for a reported IDR 1.5 trillion (US$89 million).
Unliever seems to be participating in a trend of selling off its international brands to local companies to tailor its portfolio, consolidate regions, and drive growth where it is more specialized.
The transaction between Unilever and Alicorp is subject to regulatory approvals and customary closing conditions.
Financial terms of the agreements were not disclosed.
Alicorp’s regional footprint
Alicorp’s acquisition of Fab, 3D, Aromatel, and Deja expands its regional footprint and strengthens its position in the home care product category in Latin America. The move could accelerate its regional expansion strategy.
“These brands have a long-standing heritage and play a meaningful role in the daily lives of consumers across Colombia and Ecuador,” says Ecclissato.
“Alicorp is a respected regional player with strong capabilities in Home Care, and we are confident that under their stewardship, these brands and operations will continue to thrive.”
In the early 2000s, Alicorp acquired some of the assets and brands of Unilever’s Peruvian subsidiary. It also gained production facilities, such as the Industrias Pacocha oil plant, previously owned by Unilever Andina Peru. Around that time, there were also agreements to manufacture and package Unilever products locally.
Alicorp sells a range of food, home care, personal care, industrial, and aquaculture products.
