Turbulent Economic Times Changing Shopping Behaviors: Unilever Study

Survival Strategies Include Eating at Home More and Proactive Planning of Fewer Shopping Trips

ENGLEWOOD CLIFFS, NJ–(EMWNews – August 14, 2008) – More than 30 percent of consumers are

eating at home more and eating out less and 40 percent feel worse off than

a year ago as shoppers continue to grapple with managing their budgets

during uncertain economic times, according to a new study released today by

Unilever (NYSE: UL) (NYSE: UN), one of the world’s largest consumer

products companies. The study, Winning Shoppers in Turbulent Times – A

Unilever Trip Management Report, reveals how different demographic groups

will change their shopping habits as belts continue to tighten during

challenging economic times.

“Consumers are clearly feeling the effects of a perfect storm of

challenging economic events such as the mortgage crisis, stock market

volatility, and rising energy costs,” said Lisa Klauser, Vice President of

Consumer and Customer Solutions, Unilever U.S. “They are reacting by

taking a new approach to shopping as our study found that quick trips to

the grocery store are declining and major stock-up trips that allow

consumers to replenish their cupboards for a long period of time are on the

upswing.”

Though consumers are closely watching their budgets, they don’t want to

give up on product quality. According to the study, a majority of

consumers will continue to search out trusted brands across the store, with

most shoppers stating that they would not switch to a private label to save

money.

Further, consumers would like manufacturers and retailers to be creative in

product packaging and sales approaches. There were several shopper

preferences including introducing larger pack sizes, smaller package sizes

at lower price points, and modestly reduced package sizes with the same

price point. The least preferred option — the introduction of slightly

lower quality items with the same price point.

“The reality is that consumers still need to feed their families during

these tough times. The challenge for them is how to get it done in the

most economical way possible without sacrificing quality,” added Klauser.

Additional key study findings include:

--  To help balance their budgets, 55 percent, 50 percent, and 41 percent

    of survey respondents stated they would "reduce spending a lot" on

    entertainment, vacations, and clothing, respectively;

--  Shoppers are less willing to cut back their spending on home

    heating/cooling costs, household necessities (food/personal/home care

    items), housing (mortgage/rent, taxes, maintenance expenses), and

    healthcare -- only 18 percent, 14 percent, 8 percent, and 7 percent,

    respectively, responded that they would reduce their spending significantly

    on these items;

--  The top two savings tactics used by shoppers include "only buy when

    it's on sale" and "use coupons whenever I buy this product";

--  The top dozen categories shoppers will not abandon include (all are

    above the 98 percent category level): anti-perspirant and deodorant;

    batteries; canned vegetables; fresh meat and seafood; hair care; household

    cleanser; laundry detergents; margarine; pain relievers and cold medicines;

    personal wash; pet food; and tissues and toilet paper;

--  The top five categories where shoppers would reduce their expenditure

    if the economy continues to struggle include: air fresheners; cookies;

    beer/wine; frozen dinners; and soda/pop.

    

The Unilever study was based on a proprietary survey of 47,031 Nielsen

households and was conducted between March 14, 2008 and April 3, 2008. The

survey was then compared with shopper behavior as measured among more than

ten million shopping trips taken by consumers during the year ending Q1

2008. The survey is demographically and geographically representative of

U.S. households.

Winning Shoppers in Turbulent Times builds on three other successful

Unilever Trip Management studies including, Trip Management: The Next Big

Thing (May 2005); Winning the Hispanic Shopping Trip (May 2006); and Boomer

Shoppers: Following the Money (May 2007).

To download Winning Shoppers in Turbulent Times, visit

http://www.unileverusa.com/ourcompany/aboutunilever/.

About Unilever

Unilever’s mission is to add vitality to life. We meet everyday needs for

nutrition, hygiene and personal care with brands that help people feel

good, look good and get more out of life. Each day, around the world,

consumers make 160 million decisions to purchase Unilever products.

In the United States, the portfolio includes major brand icons such as:

Axe, “all,” Ben & Jerry’s, Bertolli, Breyers, Caress, Country Crock,

Degree, Dove personal care products, Hellmann’s, Klondike, Knorr, Lipton,

Popsicle, Promise, Q-Tips, Skippy, Slim-Fast, Snuggle, Suave, Sunsilk and

Vaseline. All of the preceding brand names are registered trademarks of

the Unilever Group of Companies. Dedicated to serving consumers and the

communities where we live, work and play, Unilever employs more than 14,000

people in both the United States and Puerto Rico

— generating nearly $11 billion in sales in 2007. For more information,

visit www.unileverusa.com.