Unilever poised to go on a diet?

UNILEVER faces tough decisions as its performance flags and critics urge it to follow Shell and modernise its Anglo-Dutch structure.

There is talk that it might sell its troubled Slim-Fast operation or even demerge food from its soaps and fragrances.

Co-chairman Patrick Cescau reports on 10 February on a review of the group's growth targets to 2010, which look ambitious after recent problems. One of his options, says European Business magazine, is to prune the brand portfolio, already trimmed from 1,500 to 400. Another is to unify the UK and Dutch companies and move to a chairman and chief executive, like Shell. Unilever says it 'continues to monitor governance developments'.

Slim-Fast, hard hit by the Atkins diet, has steadied its US market share. On demerger, Unilever says: 'Never say never.'

The shares, at 483½p, are down from a peak of 659p. Unilever says: 'Our top team has rolled up its sleeves and is determined to put us on a growth footing.'