Monopolever ?
Already one of the biggest manufacturer of consumer goods globally, the British-Dutch controlled Unilever is one the prowl to gobble up smaller competitors which some sectors, including the European Union (EU) sees as a dangerous move toward monopoly.
A few months back, EU regulators said it is alarmed and will taker a closer look at Unilever’s bid to acquire the personal care division of American firm Sara Lee, which opted to focus on food and beverages.
Though Sara Lee openly said it was concentrating on the latter, hence their decision to sell off its personal care unit, EU regulators still insisted that it will look into Unilever’sEuro1.28 billion bid since they think that “the deal could give Unilever too much power in some markets”, as quoted in news reports.
Procter & Gamble is also said to be eyeing Sara Lee’s air freshener business.
In the local personal care business scene, there are several Filipino-owned companies competing with Unilever, though most of them merely settle for crumbs in terms of profitability and popularity in the face of the Unilever marketing and advertising blitzkrieg.
Still, at least one competitor has been seen lately as eating up on the C, D and E markets of Unliver due to its more affordable pricing scheme anchored on a no-frills marketing approach and shunning expensive celebrity endorsement contracts.
Today, this once obscure competitor is now earning in the billions, still not in the level of Unilever but making sure that the giant is starting to feel its market presence.
Now, considering its bid to control more brands by bidding to acquire a unit of Sara Lee, is it not a possibility that it is also moving in the same direction in the Philippines?
This came to fore since Unilever recently and openly attacked though its TV advertisements the credibility and safety of the local competitors’ best money makers.
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Questioning the chemical composition and suitability for human consumption of the Filipino competitor’s product – and claiming that theirs is the right and safe choice is obscenely one-sided and myopic. In this day and age, there will be studies, dissertations and researches to support any and every claim.
To claim that their product is superior is the norm in advertising, but to claim that it is the only good thing for consumers, like what Unilever did for its skin whitening product leaves a bad taste in the mouth. So what else is new?
Why can’t we put marketing wars to its rightful level of claiming product superiority and not prejudge or crack the rival’s credibility. Or is there something to this issue Unilever knows that we don’t?
Okay, is Unilever attacking this sole prominent Filipino rival in a bid to bully and buy it out?
In bidding to acquire the Sara Lee unit, EU in a report stated that:
British-Dutch consumer goods giant Unilever is planning to buy U.S.-based Sara Lee's worldwide soaps and personal care businesses, including the Sanex — a cheaper parallel of Unilever's Dove brand — and Duschdas, a German shower gel maker.
It will also buy several strong regional brands such as Radox bubble bath and Switzal, a maker of baby shampoo.
The European Commission says the deal would create a clear market leader in some European countries and remove a strong alternative supplier for deodorants, skin cleansing and fabric care products.
The EU executive checks large deals to make sure a company doesn't gain so much control over a market that it no longer faces much real competition and can hike prices or choke supplies without any challenge.
"The Commission will carefully scrutinize whether the proposed transaction would ultimately lead to higher prices for final consumers," the EU said.
Are the fears of EU likewise looming here? Recent activities by Unilever of pouncing on erstwhile obscure but steadily rising Filipino company gives is reason to fear such, and be vigilant if we want to remain seeing cheaper but equally effective Filipino consumer goods in store shelves in the coming years.
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