Anglo-Dutch consumer good giant Unilever anticipates further price erosion due to a highly competitive European market, chief executive Patrick Cescau has said.
“In 2005, we cut prices in Western Europe by more than one percent,” Cescau
told the Financial Times Deutschland. “Will that be enough? Competition will show that.”
He continued to say that although Unilever is not following an active strategy of price cuts, many are being forced on the company by the need to compete with discount supermarkets’ own branded products.
The main problem in Europe, Cescau observed, is lack of growth potential. Indeed, earlier this month the company announced the sale of its European frozen food division, stating that it failed to see enough potential for future growth.
