Unilever's Procurement Chief Looks To Brighter Future
Consumer confidence was gradually returning.
Global demand for bottled oil is withstanding the worst of the economic downturn, the chief procurement officer at one of the world's largest consumer goods companies has claimed.
In an interview with Reuters, Unilever's Marc Engel, who recently appeared on a panel discussion at the 2009 Procurement Leaders forum in London, said that the latest indications from suppliers suggested that consumer confidence was gradually returning. "This is a clear sign of confidence, that things are perhaps not so bad on the consumer front as was earlier thought," Engel said.
"In the developing markets like China and India there is increased demand for bottled oil, much more than everybody had expected."
Unilever, which includes Bertolli and Ben and Jerry's among its brands, currently buys around 2.5 million tons of vegetable oils on an annual basis and, as one of the world's largest buyers of palm oil, Engel said the company maintains a close watch on the factors that could destabilise its price.
As consumers continue to cut-back on big ticket items, such as new cars and holidays, there are signs that many are looking to branded products in the home to compensate.
"We have actually had some positive effects from the crisis," he said. "People who would be spending money on dining out are now not doing that but they are going to the supermarket and buying branded goods."
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