Unilever CEO Hein Schumacher Shares Vision and Strategy

The new CEO of FMCG giant Unilever has unveiled a fresh strategy aimed at achieving “faster growth,” acknowledging that the company has “underperformed” in recent times. Hein Schumacher, who took over from his predecessor Alan Jope in January, presented these plans to shareholders on October 26th. Unilever’s strategy is of significant interest to the marketing community due to its annual budget exceeding $7.3 billion. Unilever has been a pioneer in brand purpose marketing, a trend initially championed by Paul Polman during the 2010s, preceding Jope’s leadership.

Schumacher has taken a somewhat different approach, stating that the company had sometimes been guilty of “force-fitting purpose in every brand.” However, he also acknowledged that “when done well with credibility, brand purpose can be highly effective.” It appears that brand leaders will have the discretion to determine whether their brand requires an overt purpose. Schumacher commented, “Brands will be encouraged to continue social purpose or environmental purpose as part of their overall brand proposition. But we will not force fit this across the entire portfolio. For some brands, it simply won’t be relevant.”

The CEO also intends to increase Unilever’s investment in marketing and research and development (R&D), with a commitment to “increase the absolute level of brand and marketing investment just as we did in 2022 and are on course to do in 2023.” Unilever invested €7.8 billion ($8.2 billion) in 2022 compared to €6.9 billion ($7.3 billion) in 2021. This represents a reversal of the declining marketing investment trend since 2017, when the company invested €7.6 billion ($8 billion).

Schumacher emphasized that Unilever’s brand and marketing investment would be more focused and strategically allocated to larger platforms, fully funding their power brands. The term “power brands” refers to 30 brands, including Dove, Lynx/Axe, and Ben & Jerry’s, which collectively drive 70% of Unilever’s business among its portfolio of 400 brands.

Furthermore, Unilever’s new Chief Growth and Marketing Officer, Esi Eggleston Bracy, will be in charge of managing the marketing investment. She succeeds Conny Braams, Chief Digital and Commercial Officer, who left the company in May after nearly 34 years. Schumacher also spoke about the next phase of Unilever’s sustainability efforts, signaling a change in strategy from Paul Polman’s long-term sustainability goals.

Rather than pursuing long-term “aspirational goals,” Unilever will focus on “steady, meaningful progress on significant issues” on a quarterly and annual basis. Schumacher stressed that the company is not moving away from sustainability but is adopting a more impactful approach to it.

Ian Whittaker, founder and managing director of Liberty Sky Advisors, added that Schumacher’s remarks reflect a trend seen in top management at major companies, highlighting marketing as an investment that plays a vital role in driving top-line growth.

Have you read?
Largest Hotel Chains in the World, 2023.
Best Residence by Investment Programs for 2023.
International Financial Centers Ranking, 2023.
Best Citizenship by Investment (CBI) for 2023.
The World’s Most Valuable Unicorns, 2023.