Price cuts benefit Unilever

Published on Friday 7 August 2009 10:11

CONSUMER goods giant Unilever saw the benefits of price-cutting and new products as it grew sales volumes for the first time since last year.

The return to volume growth – up 2 per cent between April and June – was far better than expected and helped by demand for ice cream such Ben and Jerry's in the hot weather despite "very challenging" European markets.

Unilever – behind a host of brands including Dove soap, Flora spread and Domestos detergent – said underlying sales were up 4.1 per cent in the second quarter.

Chief executive Paul Polman said the group had been helped by higher marketing spend, lower commodity costs and the launch of new products.

"I am encouraged by the return to volume growth across all regions and the majority of countries and categories," Mr Polman added.