Unilever shapes up with €1bn cuts for Kraft battle

The Anglo-Dutch owner of Dove soap and Ben & Jerry’s ice cream cut costs faster than expected in the first half of the year by reducing ad spend and paying its suppliers less.

Its 20% operating margin target looks reachable. Yet, with US rival Kraft Heinz free to go hostile next month, volume growth remains too low for comfort.

The unwelcome approach from Warren Buffett-backed Kraft Heinz in February has been positive in one respect.