Ato Forson’s ‘Lies’ Exposed As Unilever Clarifies Lipton Tea Production Relocation
Unilever Ghana PLC Clarifies Lipton Tea Production Relocation Amid Global Strategic Realignment
Unilever Ghana PLC has clarified recent reports regarding the relocation of its Lipton tea production line to its Nigerian subsidiary, addressing speculation that the move was driven by unfavorable business conditions in Ghana. The company emphasized that the decision is part of a broader global strategy aimed at optimizing operations.
Chris Wulff-Caesar, Managing Director of Unilever Ghana, stated that the halt in tea production is aligned with a global initiative to transfer operations to Eketerra, Unilever’s subsidiary in Nigeria. He stressed that the decision is unrelated to Ghana’s macro-economic environment or local operational challenges such as power supply issues, commonly referred to as ‘Dumsor’.
“Certain decisions are taken at the global level, which sometimes impacts us,” Wulff-Caesar explained. “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.”
He further clarified, “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.”
Despite the relocation of the tea production line, Unilever Ghana continues to view the country as a viable investment destination. “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,” Wulff-Caesar affirmed.
Mr. Wulff-Caesar’s clarification is a direct rebuttal to claims made by the minority leader, Cassiel Ato Forson on the floor of parliament, claiming that the company has left Ghana as a result of dumsor and a declining economy.
During a recent familiarisation tour of the Unilever Ghana factory, it was observed that production of several of the company’s popular brands was ongoing, highlighting the company’s commitment to maintaining operational stability in the region.
Management underscored the importance of streamlining its global supply chain to enhance efficiency across all business units. This strategic focus has already yielded positive financial results for Unilever Ghana.
According to the company’s financial statement for the year ending 2023, Unilever Ghana posted a robust performance with an 838 percent increase in profit compared to the previous year. Furthermore, the company reported over ¢240 million in revenue for the first quarter of 2024, driven by material cost savings.
Unilever Ghana’s reaffirmation of its investment plans and operational stability underscores its long-term commitment to the Ghanaian market, even as it aligns with global strategic initiatives to optimize its overall business performance.