Unilever's "leading brands strategy" is paying dividends

Sales were especially weak in North America where diet trends have changed due to the popularity of the Atkins diet.

But Unilever insisted that its policy of concentrating on its 400 core brands - which include Dove soap, Marmite and Magnum ice cream - is starting to pay dividends.

"Our leading brands are a combination of some global brands and some strong local brands," chairman Niall FitzGerald told World Business Report.

The firm confirmed it expected sales to grow just 4%, after lowering its growth targets from 5-6% at the end of June.

Slimming trends

It added that over the six months to June sales of its leading brands grew 3.1%, now representing 90% of its business.

Unilever said it had continued to make "excellent progress" in its personal care, savoury products, dressings and health spreads, while its global ice cream sales were good.

But a decline in sales of Slimfast products has been problematic.

"We're certainly addressing the Slimfast problems as we speak," said finance director Rudy Markham, adding that Unilever will broaden the range of Slimfast products to attract more dieters.

"I'm certainly not expecting that the slowdown in sales that we've had at Slimfast in the first half year will immediately stop as we start the second, but we're very clear about the issues and very active in addressing them," he said.