Unilever Ghana PLC has addressed reports suggesting that the relocation of its Lipton tea production line to its subsidiary in Nigeria was due to unfavourable business conditions in Ghana.

The company clarified that the halt in tea production is part of a global strategy to transfer operations to the Nigerian firm, Eketerra, and is not related to macro-economic challenges.

Recently, several multinational companies exited Ghana over economic and profitability concerns.

Unilever Ghana, one of the longest-operating fast-moving consumer goods companies in the country, was also mentioned in this context following the suspension of its Lipton tea production line.

However, the Managing Director of Unilever Ghana, Chris Wulff-Caesar, clarified that the decision is part of a broader global strategy to optimize operations and leverage the strengths of its subsidiaries.

“Certain decisions are taken at the global level, which sometimes impacts us. Around 2019, we had to transfer our oils and spreads business to another company, Upfield, located next door. This is all part of a global strategy to focus on specific core categories within the organization.

“The tea story is very similar. This is not a Unilever Ghana decision. It is a global strategy decision to offload its tea operations to operate more efficiently outside the current setup of Unilever globally.

“The tea operations leaving Ghana have nothing to do with ‘Dumsor’ or activities in Ghana. It is a global strategy decision. The new company, Eketerra, has taken over that business, not Unilever Nigeria. The decision started in 2021 and took time to implement.

“Ghana remains a place for investment, with ongoing investments in our factory. Unilever still views Ghana as a good investment destination and is here to stay.”

During a visit to the factory as part of a familiarisation tour, it was observed that production of some of Unilever Ghana’s popular brands was in full swing.
Management emphasised the importance of streamlining its global supply chain to enhance efficiency across all business units, stressing the company’s operational stability.

According to Unilever Ghana PLC’s financial statement for the year ending 2023, the company posted a robust performance with an 838 percent increase in profit compared to the previous year.

The company has already shown signs of growth, having made over ¢240 million in revenue for the first quarter of 2024, driven by material cost savings.