PG Tips could be sold by Unilever

Tea brands Lipton and PG Tips could be sold by Unilever as there is a slow down in sales as consumers are switching to herbal teas.

The consumer goods giant Unilever gave the announcement as they have seen the slowest quarterly growth in ten years.

The company said they are looking at “all options” for the tea brands including a full or partial sale fo PG Tips and Lipton.

The British tea industry is valued at £667m each year but, the last few years demand has fallen by 2.7% for black tea.

Chief executive Alan Jope who took over a year ago said he is targeting “brands with purpose” and in 2019 he said he will be looking more closely at Marmite, Pot Noodle and Magnum Ice cream brands.

He said: “We are now stepping up execution against our fundamental drivers of growth.

“These are to: increase penetration by improving brand awareness and availability; implement a more impactful innovation programme; improve our performance in faster growing channels; drive purpose into all our brands; and fuel growth through cost savings.”

He added, “We are continuing to evaluate our portfolio and have initiated a strategic review of our global tea business.”

Unilever said its overall turnover increased by 2% to €51.9bn (£43.9bn) for 2019.