Unilever set to end local production in July

Food and house care manufacturers Unilever Caribbean Ltd (UCL) announced that, come July, production and manufacturing of spread products such as Blue Band Butter and Flora could come to an end.

In a release on Tuesday, Unilever explained that, following the sale of its spreads business internationally, it entered into a supply agreement with a “third party.” That agreement will end on July 31.

The release said after the end of the agreement, production of these brands will cease in TT.

“UCL announced today the start of the consultation process in line with the expiration of the supply agreement with the third party. This finalises the sale and transition of the spreads business to its new owner,” the release said.

Newsday discovered that the third party is Upfield – a global plant-based food company which owns several brands of margarine. The company is considered one of the largest plant-based consumer packaged goods companies in the world, operating in 95 countries.

In 2018 Upfield separated from then parent company Unilever and was purchased by a private investment firm, KKR, for a sum of €6.825 billion.

Vemco confirmed that it was under a two-year contract with Upfield as distributors of the spread products.

Unilever said it will continue to operate in TT with a more fit-for-purpose business model focused on sales, marketing and supply chain.

“(We) remain committed to delivering superior performance and driving sustainable and responsible growth.”

Unilever said it initiated consultation with representatives of the Oilfields Workers’ Trade Union (OWTU) – the recognised majority union for the company’s workers – concerning the deliberations over the act.

Contacted for comment on Tuesday, OWTU chief education officer Ozzi Warwick told Newsday that no such initiation was made.

“We are concerned with what has been the trend over the last seven years where the country is losing its productive capacity with the closure of the Arcellor Mittal, the (Petrotrin) Pointe-a-Pierre Refinery and various plants at Point Lisas; not to mention the closure of many small and medium businesses. We have been sharing these concerns for quite a while.”

Warwick added, “This country is facing a process of de-industrialisation under the current government and we remain concerned as this will cost the country and create even more hardship on the lives of our citizens.”

Warwick said the union will make a comprehensive statement on the Unilever situation soon.

In a notice to shareholders issued by Unilever on Wednesday, the company said, "UCL hereby advises that at a board meeting held on March 9, the company's board of directors resolved to initiate a consultation period with the OWTU under the terms of its subsisting collective agreement as a result of the expiration of a third-party spreads supply agreement of 2018 and the consequent cessation of local manufacturing, production and warehousing activities."

Unilever began business TT in 1964 after acquiring Trinidad Manufacturing and Refining, and West Indian Oil Industries, and merging the two companies under the then Lever Brothers brand. In 2004 it re-launched its brand, turning Lever Brothers West Indies to Unilever Caribbean Ltd.

Aside from its spread brands the company also manufactures home care products such as Breeze and Radiante laundry detergents, Quix Dish washing Liquid and Comfort Fabric Softener.

After reporting a $54 million loss in 2020, it announced the ceasing of all production in TT and retrenching 382 employees. A total of 191 monthly and hourly-paid workers, 184 in the warehouse, sanitation, quality control and field specialist areas, four warehouse managers and three other workers were retrenched.