IHG, Unilever sign deal for bathroom products: Good time to buy stocks?

June 20, 2022 06:34 AM PDT | By Abhishek Sharma
 IHG, Unilever sign deal for bathroom products: Good time to buy stocks?
Image source: Studio Light and Shade, Shutterstock

Highlights

  • IHG Hotels and Resorts has signed a deal with British FMCG major Unilever for full-sized bathroom products.
  • The Holiday Inn owner will replace miniature products with full-sized ones to minimise single-use plastics in over 4,000 hotels.

Plastic pollution has become a major concern across the world. Companies have been trying new innovations to switch to more environmental-friendly ways to carry out their day-to-day activities. With a similar aim in sight, IHG Hotels & Resorts (LON: IHG), a London-listed company that operates several hotel chains in multiple countries, has joined hands with British consumer goods manufacturer Unilever (LON:ULVR) for the supply of full-sized bathroom products like hand wash, body wash, shampoos, conditioners, and other products.

In a statement, IHG Hotels & Resorts announced that it would replace the bathroom miniatures with bulk amenities in over 4,000 of its hotels. These bulk amenities are basically larger bottles or dispensers with a capacity of at least 250ml. They will not be replaced after each guest's stay, the company said.

The deal is a part of IHG's 2019 commitment to removing bathroom miniatures from all its hotels and replacing them with bigger-sized amenities. The company aims to eliminate single-use items throughout the guest stay by 2030, the statement read.

IHG Hotels and Resorts aim to eliminate single-use items throughout the guest stay by 2030.

© 2022 Kalkine Media®

Details of the deal

Under the deal, Unilever's largest brand Dove will supply full-sized bathroom products, including shampoo, body wash, hand wash, conditioner, and body lotion, to IHG's mainstream brands like IHG Essentials and Suites Collection hotels. These chains account for about 80% of the company's portfolio.

The switch is expected to save a minimum of 850 tonnes of plastic annually in the company's Americas region alone, it said.

Last year, IHG made a similar announcement for its InterContinental Hotels & Resorts properties when it joined hands with European luxury brand Byredo for full-sized products.

Share price performance of IHG hotels

Following the announcement, the share price of the hospitality firm moved slightly upwards. As of 12:31 pm GMT+1 on Monday, the shares were trading at GBX 4,293.00, up by 0.98%. The company is listed on the blue-chip FTSE 100 index and holds a market cap of £7,824.37 million. Over the past one year, the share value has depreciated by over 15%, while the year-to-date returns stand at -10.33%.

Share price performance of Unilever

Unilever is among the world's biggest fast-moving consumer goods (FMCG) companies and is also listed on the FTSE 100 index. Among Unilever's major brands are Dove, Sunsilk, Axe, Ben & Jerry's, etc. The company posted a 7.3% increase in underlying sales and an 11.8% increase in turnover in Q1 2022, in contrast with Q1 2021.

Shares of Unilever were trading at GBX 3,585.50, down by 0.21% as of 12:35 pm GMT+1 on 20 June 2022, with a market cap of £91,682.96 million. The shares haven't performed particularly well in the past one year and have fallen by almost 17%. The year-to-date return currently stands at -9.23%.

Note: The above content constitutes a very preliminary observation or view based on market trends and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks.


Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media LLC (Kalkine Media, we or us) and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures/music displayed/used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source (public domain/CC0 status) to where it was found and indicated it, as necessary.


Sponsored Articles


Investing Ideas

Previous Next