Unilever boss announces €1.2bn product development platforms to emerge within three years (19459000)
Since his appointment in July 2023, Schumacher has transformed the consumer goods sector globally. This includes plans to cut 7,500 jobs in European offices.
First half 2024 sales for the Marmite, Knorr and Knorr brands, which marks Schumacher's first year as chairman. The first quarter volume decline in Europe was replaced by 2.6% Q3 growth in the US.The company's growth action plan was showing positive signs.
Schumacher, speaking at Barclays' annual global essentials conference, said Unilever's plan would be to focus on fewer but more important innovations.
Unilever has 12 NPD programs in its pipeline
CPGs need innovation to survive [consumer packaged goods]"We were wrong, he told me.
We play 80 % and it is important to create categories and markets. I am a big fan of innovation but it takes a serious program.
Unilever will try to double the size of its innovation, focusing on 30 "powerful brands" and adding other €100 million programs. Twelve "big bets" that should turn into a "€100 million platform within two to three years" were also mentioned.
We're on the right track. In just one year [since the new plan], they're all behind these 30 powerful brands. "They're behind each of these 30 powerful brands."
The focus will be on long-term bets over several years. Schumacher said the company has doubled the number of its innovation programs since 2020, with 12 more underway.
Schumacher aimed to save around 800 million euros through job cuts, but also to increase productivity by improving the net supply chain. Savings from efficiency gains and cost reductions would be used for market investments and technology capitalisation.
Unilever's ice cream business
Schumacher said the next steps for Unilever's soon-to-be-separated ice cream business would include a strategy for improvement before and after the separation, as well as a response to a difficult start to the summer season in Europe.
Schumacher said he expected the ice cream business to “improve compared to 2023 in all metrics,” such as revenue, gross profit, operating margin and cash flow. “I am still confident that we will achieve this throughout the year,” he added.
The increase in prices in the first half of the year was responsible for a 0.6 % increase in ice cream sales.
Poor performance in China, where market conditions were more difficult, did not help either. However, bad weather in Europe certainly caused problems.
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