Unilever Set to Unveil Growth Strategy Amidst Trade Challenges
Unilever is preparing to share a key update on its strategic turnaround this month, as new CEO Hein Schumacher works to reboot performance in the face of sluggish growth and increasing trade pressures across the FMCG landscape.
Investors are closely watching for signs of revitalisation following years of underwhelming results. The maker of Dove, Knorr, and Hellmann’s has faced mounting scrutiny over pricing strategies that lifted revenues but dented volumes, sparking retailer resistance and impacting consumer demand. As part of its Q3 trading update on October 26, Schumacher is expected to outline a roadmap aimed at restoring competitiveness, streamlining operations, and reigniting sustainable growth.
Unilever reported a 9.1% sales increase in H1 2023, driven primarily by price hikes of 9.4% while volumes fell 0.2%. This approach has sparked concerns over long-term resilience, especially as retailers push back against branded price inflation and private label alternatives continue gaining ground. Industry analysts note that the group risks losing shelf space unless it recalibrates its value proposition.
The spotlight is particularly on Unilever’s key categories—including personal care, food, and home care—to demonstrate more balanced pricing and volume dynamics. Schumacher, who took the helm in July following his tenure at Dutch dairy giant FrieslandCampina, has indicated a strong focus on brand performance, margin improvement, and portfolio management, with rumours of further disposals of underperforming units.
FMCG observers are also eager to see how Unilever plans to navigate slowing consumer demand across key markets, raw material cost volatility, and retailer negotiations which have intensified in Europe post-pandemic. The broader industry trend of shifting consumer loyalty towards lower-cost private-label brands is a crucial pressure point facing legacy multinationals like Unilever.
As the company gears up for what may be a pivotal update, stakeholders will be assessing whether Schumacher’s changes can reverse stagnating volume trends and drive value across global markets, while maintaining brand equity and retailer partnerships in a fiercely competitive retail environment.