Unilever aims for mayo market dominance

Hellman's Extra Light is being launched in the UK with a £1.9 million marketing budget, and the company believes it can make a real point of difference with the brand, which has by far the lowest fat content of any mayonnaise on sale in Britain - 6 per cent compared to more than 10 per cent for other brands.

The aim is to turn Hellman's into a £128 million 'master brand' by 2008, part of Unilever's ongoing plan of focusing on a handful of truly global brands and selling off those with limited geographic and development potential.

Datamonitor suggests that the move is a clever one, coming as it does at a time when food and drink producers are increasingly aware of the demand for healthy solutions from dieters and non-dieters alike. In particular, Datamonitor points out that the brand extension recognises the importance of 'low and lite' variations of well-known brands in catering for this demand.

In its research, Unilever identified that high fat content was the biggest barrier to attracting new users, as well as restricting the amount consumed by more loyal users, Datamonitor said. With most standard mayonnaise offerings like Hellmann's Real containing around 79 per cent fat - and 'low fat' versions such as Hellmann's Light containing a not insubstantial 29.8 per cent - the Extra Light brand is a real advance.

The company hopes that its latest launch will sell four million jars in its first year. This forecast is primarily based on the belief that the new product will capitalise on a growing trend in favour of healthy eating. The optimism behind the launch is also because Hellmann's Light has already proved successful, selling almost as much as Hellmann's Real, Datamonitor said.

Hellmann's is regarded as one of Unilever's six UK master brands. The company has staked its future on the performance of its top brands, which account for 92 per cent of Unilever's business. Consequently, Hellmann's has recently received renewed focus because it forms an integral part of Unilever's Path to Growth strategy, which concentrates on core global brands including Flora, Lipton and Bertolli. Part of the focus included the addition of Hellmann's snack sauces earlier this year in a bid to tap into a younger market, the market analysts added.

"Until recently, marketers had often been marketing healthy product alternatives specifically to dieters. However, in recognition of the fact that so many dieters lack the willpower to sustain any weight loss and often diet sporadically throughout the year, marketers can help lessen the guilt by offering consumers their favourite brands in formats that seem more healthy than the original version,"​ Datamonitor said.

"That's why the concept of 'low and lite' will retain its importance to food and drink innovation in the coming years."​

Oil gone​

Meanwhile, the Path to Growth programme of disposals has continued this week with the announcement that Unilever's edible oil business in Pakistan is to be put up for sale.

The edible oil business, which focuses on the Dalda brand, is one of the biggest in Pakistan, but like other branded oil manufacturers, Unilever has suffered at the hands of unbranded oils in recent years, prompting the decision to put the unit up for sale.