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Ceo Report Unilever and Cuba

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CEO Report (3) « Strategy of International Business »

International Management
Claire BODEL
Professor Park, Young Ryeol
2016/05/09

Unilever returns to Cuba

Summarize

Unilever is one of the word’s leading suppliers of food, home and personal care products with sales in over 190 countries and reaching 2 billion consumers a day. It has 172 000 employees and generated sales of 48 billion euros in 2014.
Intersuchel S.A. is a Cuban mechatil society with a long experience in the production and commercialization of personal care and cosmetic products and home care.

This article from the Americain magazine « Forbes » caught my attention. It deals about the Anglo-Dutch multinational consumer goods company Unilever and Cuba’s economy.
Indeed, Unilever has announced its return in Cuba through the creation of a joint venture « Unilever-Suchel S.A. » in the Mariel Special Development Zone. The Special Economic Development Zone of Mariel is a project directed to encourage the nation’s sustainable economic development by attracting foreign investment, technological innovation and industrial concentration while at the same time ensuring environmental protection. Cuba is opening up its economy to foreign investment with some economic reforms in the system.
As a result, Unilever-suchel S.A. will build a new factory to enter the Cuban Market with international known brands such as Lux, Omo, Rexona, Sedal.

The food and cosmetics giant Unilever will begin operations in Cuba in 2017 after communist officials authorized a joint venture with Suchel.
In the venture, Unilever will invest $35 million in order to acquire a pole position in that country.
Futhermore, it can be considered as a symbolic return to an earlier foray by Unilever into Cuba since a joint Unilever endeavor failed in 2012, when the company pulled out of a joint venture with the Cuban state-owned

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