India is an anchor market for Unilever, says newly appointed chief executive Fernando Fernandez

On Thursday, Fernando Fernandez, Unilever’s newly appointed chief executive, joined Warren Ackerman, Head of Staples Equity Research at Barclays, for a wide-ranging discussion on the company’s future. Fernandez outlined a vision of decisive leadership, a sharper focus on organic growth, and a commitment to operational discipline. His remarks reflected a leadership style that prioritizes frontline execution, strategic resource allocation, and a culture of high performance.

Fernandez described his appointment as a reflection of the Board’s commitment to accelerating value creation. “I am not anyone’s person—I am my own person,” he stated. “We will move even faster and be more decisive.” He reaffirmed that the previously announced 7,500 job cuts would be completed by June as part of this strategy.

Positioning himself as a hands-on leader, Fernandez made it clear that he intends to be deeply involved in the business’s core operations. “I will spend 95 percent of my time on brand plans, demand generation, and in-market execution,” he said. He also emphasized the need for greater decisiveness in capital deployment, focusing investments in areas where Unilever has the strongest competitive advantage and the largest profit opportunities.

He identified the United States and India as Unilever’s anchor markets, drawing a comparison to other successful consumer goods companies that have stronghold markets. “If you are running Unilever, you would not swap our Indian business with any other business,” he said at the fireside chat in London. India is Unilever’s second-largest market, accounting for 12 percent of global sales. However, its growth has slowed over the past year, as inflationary pressures have forced consumers to tighten their budgets across categories. While Europe has historically been underprioritized, Fernandez said growth there is now accelerating, driven by innovation. He also expects performance in China and Indonesia to improve sequentially.

A major theme of his remarks was the need to rethink brand influence in an era of consumer skepticism toward large corporations. “We need to drive desirability at scale and rethink our marketing systems,” he said. He highlighted the importance of third-party validation, explaining that Unilever must create ecosystems where others - such as influencers, gatekeepers, and healthcare professionals - speak for its brands.

Reflecting this shift, the company’s advertising spend has risen from 13 percent of revenue in 2022 to nearly 16 percent today. Spending on social media will increase from 30 percent to 50 percent of the total marketing budget, with plans to work with 20 times more influencers.

Fernandez also sees significant opportunity in premium product segments, aiming to increase their share of Unilever’s revenue from 20 percent to 50 percent. “Science is a key enabler of premiumization,” he noted, stressing the importance of leveraging Unilever’s research capabilities to enhance its top brands.

Rather than simply competing for existing market share, Fernandez said Unilever must focus on expanding markets. “Our goal is not to steal market share - it is to create markets.” He also reaffirmed the company’s portfolio strategy, including the planned public listing of its ice cream business. On mergers and acquisitions, Unilever will continue pursuing targeted, bolt-on acquisitions, particularly in the U.S. and India. He pointed to Liquid IV and Nutrafol—both of which have seen significant growth—as examples of this approach. However, he ruled out large-scale, transformational acquisitions. “Those only work from a position of strength. But if we are in a position of strength, why would we need them?” He also confirmed plans to accelerate the divestiture of non-core food brands.

Productivity, he argued, should be an ongoing discipline rather than a one-time effort. “Productivity should be a habit, not a one-off exercise,” he said, adding that Unilever will deploy game theory at scale to optimize procurement strategies.

He concluded with an uncompromising stance on organizational excellence. “There will be no compromise on talent and a winning mindset.” His remarks signal a bold, execution-focused strategy for Unilever, one that prioritizes agility, brand desirability, and disciplined growth.