Rapid advancements reported by new Unilever CEO, as sales surge in the initial quarter.
Fernando Fernandez's Game Plan for Unilever
Fernando Fernandez, the new big boss at Unilever, is all set to revamp the Dove and Hellmann's owner with a fresh approach. He's confident about hitting their annual targets and shedding off the old 'woke' image.
In his initial address, Fernandez, a former finance chief, emphasized a swift turnaround. With sales up by 3% in the first quarter, the company is sailing smoothly. He further stated, "We're cruising at high speed, confident in making progress in 2025 and beyond."
Brands like Lynx and Persil are riding on this success wave. The increase in sales isn't just due to price hikes (1.7%) but also due to a 1.3% boost in volume sales.
Prioritizing profit over "doing good" seems to be the new mantra. Fernandez aims to steer Unilever away from social agenda-pushing, with critics in the past accusing the company of "virtue-signaling."
Despite a contentious trade war and Donald Trump in the picture, Fernandez remains optimistic. He expects a "limited and manageable impact."
Unilever has already trimmed down its workforce by 6,000 jobs, a move initiated by the previous CEO. And the saga surrounding Ben & Jerry's founders wanting to buy back the ice cream division seems to be a non-issue, according to Fernandez, who states, "Ben & Jerry's is not for sale."
Unilever's Focus Areas
- Demand Creation and Execution: Fernandez champions being a "frontline CEO," actively involved in brand strategies. Every brand must prove its worth by creating market demand.
- Emphasis on Premiumization: The strategy is geared towards having around half of the business in premium products, as these drive growth and boost margins.
- Social Media and Digital Strategy: Unilever is leveraging a "social-first strategy" to build trust and capitalize on digital environments. Marketers are urged to focus on the "4Vs," though their specifics remain undisclosed.
India is eyed as a long-term strategic priority, aiming to establish it as a key market alongside the U.S.
With a strategic focus on operational efficiency, growth through premium products, and a digitally savvy approach, Fernandez is steering Unilever towards a fresh horizon.
- Fernando Fernandez, the new head of Unilever, plans to increase the company's focus on premium products, aiming to have around half of the business in these high-margin items.
- In his initial address, Fernandez, a former finance chief, emphasized a focus on operational efficiency, stating that Unilever needs to be a more lean and agile organization to compete in the current market.
- Unilever's marketing team is adopting a "social-first strategy," capitalizing on digital environments to build trust and drive sales for key products like Dove and Hellmann's.
- Aiming to revamp Unilever's image, Fernandez plans to shift the company's focus away from social agenda-pushing and towards profit-driven goals.
- Despite facing challenges such as a contentious trade war and the desire of Ben & Jerry's founders to buy back the ice cream division, Fernandez remains optimistic about Unilever's future and expects the company to continue making progress in the stock market.
