Barclays Outlines Five Strategic Priorities to Unlock Unilever’s Growth Potential
As Unilever’s new CEO Hein Schumacher continues to redefine the company’s direction, Barclays has released a critical analysis highlighting five strategic areas where the FMCG giant can sharpen its focus to drive growth and enhance shareholder value.
1. Accelerate Portfolio Reshaping
Barclays believes Unilever must prioritize shedding underperforming or non-core segments, particularly in Beauty & Wellbeing and Personal Care. Recent divestitures, such as Suave in North America, mark a positive step, but further action is expected. Streamlining the portfolio will not only increase agility but also sharpen category leadership.
2. Embed a Performance-Driven Culture
Under Schumacher’s leadership, there’s increasing emphasis on operational excellence and accountability. Barclays suggests that a stronger performance culture — one that rewards innovation, local execution, and brand building — will be key to sustaining competitiveness across mature and emerging markets.
3. Revitalize Top Brands
Despite its expansive portfolio, Unilever’s top 30 brands generate 75% of sales. Barclays points out that these brands, including Dove, Hellmann’s, and Knorr, need targeted investment to maintain their relevance and pricing power. Margin expansion will depend on streamlining innovation pipelines and reinforcing core equities.
4. Improve Margin Mix
While Unilever has made progress in pricing and cost control, Barclays sees room for further margin improvement by shifting portfolio weight toward higher-margin categories such as Beauty & Wellbeing. Strategic innovation, better channel mix, and geographic optimization could further enhance profitability.
5. Refocus Capital Allocation
Aligning capital deployment with strategic priorities is essential. Barclays encourages Unilever to maintain discipline in M&A to avoid overpaying for scale, highlighting the need for accretive acquisitions with clear synergies. Divestments should be used to recycle capital toward growth platforms and shareholder returns.
Barclays maintains an Equal Weight rating on Unilever’s stock with a price target of £40.00. As Schumacher steers the business through a transformative phase, clarity on these five focus areas will be crucial for market confidence and long-term sustainable growth within the FMCG landscape.