Unilever, Genomatica Launch $120 Million Venture to Develop Palm Oil Alternative
June 16 2022 - 8:39AM
Dow Jones News
By Michael Susin
Unilever PLC said Thursday that it has launched a new venture
with U.S.-based biotech company Genomatica to develop an
alternative product to palm oil and fossil-fuel derived ingredients
that are used in everyday cleaning and personal-care products.
The Anglo-Dutch multisector retailer--which owns consumer brands
such as Ben & Jerry's ice cream and Dove soap--and Genomatica
are investing $120 million between them in the venture. The
companies also expect other investors to join them.
The decision comes amid increasing inflationary pressures on raw
materials and supply-chain issues. When reporting first-quarter
earnings, Unilever said it had increased prices by an average of
8.3%. Those higher prices resulted in some softening of consumer
demand, with overall volumes declining 1%, it said at the time.
"This new venture will sit at the intersection of science and
sustainability, meaning we can continue to grow our business
without relying only on palm oil or fossil fuel derivatives, while
also making our supply chains more resilient from having access to
ingredient alternatives," Unilever's Chief Research and Development
Officer Richard Slater said Thursday.
Write to Michael Susin at michael.susin@wsj.com
(END) Dow Jones Newswires
June 16, 2022 08:24 ET (12:24 GMT)
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