Back to scrubbed look at Unilever

PERFUME brands Calvin Klein and Valentino could soon be on the block as Anglo-Dutch giant Unilever focuses on less sexy products such as Birds Eye fish fingers and Persil washing powder.

The multi-national food group is believed to have appointed Morgan Stanley to flush out a buyer of its cosmetics division, which also makes Karl Lagerfeld, Nautica and Chloe fragrances. It could fetch more than £500m.

Consumer goods groups such as Procter & Gamble and cosmetics firms L'Oreal and Estee Lauder would be interested. But they are unlikely to pay top prices in the current climate. 'Calvin Klein brands are not really today's brands anymore,' said David Liston at fund manager Gerrard.

Unilever bought Calvin Klein and Elizabeth Arden in the 1980s. Since then, it has added a handful of other famous fragrances. But 18 months ago it decided to offload Arden at a loss for £157m. Unilever once owned more than 1,600 brands, but now has just 800. It wants to halve this to 400 by the end of 2004.

Analysts reckon it makes sense to focus on food and personal care products. Its brands include Dove soap, Flora margarine and Hellman's mayonnaise. They tend to be stocked in bulk by supermarkets, whereas perfumes are sold to department stores and duty free stores.

Upmarket fragrance sales have also been hit by the fall in travel after 11 September and are vulnerable in an economic slowdown.