An interview with Fernando Fernandez, Unilever’s new CEO

In a recent fireside chat with Warren Ackerman, Head of European Consumer Staples Research at Barclays, Unilever CEO Fernando Fernandez spoke about everything from priorities and portfolio to pace of change. Here are some key takeaways.

“A frontline CEO”

When asked what style of leadership he brings to the role, Fernando says that he will be all over our brand plans, “focusing on demand creation and in-market execution. Every brand and category in Unilever’s portfolio must earn the right to be there.”

In 2024, we were number one in total shareholder return. So the Growth Action Plan is working. It gives us a good foundation to continue building on. “I want to ensure that we shift this company outwards and forwards, and that everyone is absolutely focused on creating demand.”

“Creating desire at scale”

With regard to how he’s going to unlock value, Fernando explains that in the long term, this will be about doubling down on premiumisation, as it’s a driver of volume growth and margin expansion. “I would like to have around 50% of the business in premium,” he says. “Building a portfolio that’s more premium requires creating desirability at scale.”

“Great brands first, the rest follows”

This gear change is also about ensuring our strongest brands have more global presence. “We have taken a significant step forward with the top 30 brands and the focus we’re putting on them,” says Fernando, “but I believe we can do better. We need to make our best brands travel fast.”

“Execute at pace”

Another way we’ll unlock value is by executing at pace. In a significant organisational change, we’re ‘divisionalising’ our sales force in the top 24 markets. “We believe this will make the company much stronger, increasing accountability of delivery to the Business Group Presidents,” says Fernando.

“Clear opportunities for growth”

Looking at the growth opportunities for the second half of the year, Fernando points out that we’ll see stronger contributions from India, China and Indonesia.

In India, we’re shaping our portfolio in line with shifts in consumer preference and channels. In China, our strategy is now more selective, and we’re adopting a more direct route to market. And in Indonesia, we’re seeing green shoots and have been beating our forecasts in recent months.

These growth opportunities are backed by our best innovation pipeline in years – one that Fernando intends to roll out further and faster. “I intend to move on a bigger scale,” he says, “and ensure the geographical coverage of key innovations in our top 24 markets happens quicker than previously.”

“No distractions”

When it comes to the separation of Unilever’s Ice Cream business, Fernando explains that a demerger by the end of the year is moving ahead as planned. With all the workstreams progressing to plan, “this will not be a distraction for the management team”.

He also clarifies that our portfolio strategy – which includes accelerating Prestige and Wellbeing, and shifting to premium in Europe and the US – remains unchanged.

“Our financial metrics have to say it all”

Asked how he’ll ensure consistent top- and bottom-line performance in the quarters and years ahead, Fernando explains that it’s financial metrics – including revenue and profit growth, and gross margin expansion – that guide his strategy and will show whether or not he’s successful.

“We’re confident that the changes we’re implementing – such as the focus on multi-year scalable innovation platforms, desire at scale and better in-market execution – will drive the company to the level of growth our investors demand and deserve.”

Watch the full conversation here