Unilever promoted Fernando Fernandez to CEO with a clear message: to make changes quickly and put the consumer giant on a firm footing again.
The 37-year Unilever veteran has big plans for the company, from doubling down on influencer marketing to building “geographical anchors.”
“Desire at scale: I want to ensure that this is injected in our marketing philosophy,” Fernandez told Barclays analyst Warren Ackerman in a fireside chat last week, marking his first interview detailing his strategy as CEO.
One of the things Fernandez said he wanted to do as a “front-line CEO” was to reach more people through social media marketing.
“Messages of brands coming from corporations are suspicious messages,” he said. He added that India has 19,000 zip codes while Brazil has 5,764 municipalities—Fernandez wants one influencer in each of them.
“That’s a significant change. It requires a machine of content creation very different from the one we have had in the past,” the new CEO said. He plans to increase social platform spending from 30% to 50% of the total advertising budget.
Fernandez will preside over Unilever’s next chapter as it faces activist investor pressures and is in the midst of a strategic growth plan. Last month, the company announced the sudden departure of former CEO Hein Schumacher just as some of his initiatives began paying off, pointing to the need for faster change in an increasingly competitive consumer goods market.
Fernandez, the CFO who previously led Unilever’s Beauty & Wellbeing segment, became the clear choice for his “decisive and results-oriented approach,” chairman Ian Meakins said in a statement.
Unilever’s shares are up 21% in the last year.
Changes in the works
Big changes were underway at the company, including layoffs, the shedding of smaller food brands in Europe, and the spinoff of its ice cream business.
Still, Fernandez pointed out that there’s scope to streamline the business more. He said that about €1 billion worth of European food brands in the broader portfolio aren’t a fit for Unilever.
His remarks come at a time when Unilever is preparing to demerge its ice cream unit that makes Magnum and Ben & Jerry’s with a stock market listing in Amsterdam, leading to speculation that Unilever might also consider separating its food business too.
Fernandez didn’t rule out such a move out, but he said he was “committed to growing that business” for now.
“Probably we will also act on that. My intention is to act on all of these, probably at a faster pace,” he said, cautioning that doing so would depend on market conditions. “I don’t have any emotional engagement with any brand when it comes to portfolio management.”
Another way to grow Unilever’s strengths would be to strengthen its presence in its biggest markets. Fernandez gave the example of the U.S. And India as “geographical anchors” for the long term—a strategy he applied when he led the beauty business and one he thinks will work for the rest of Unilever’s sprawling brands.
Ultimately, as the new Unilever chief, he was “absolutely focusing on demand creation and market execution” above all.
Representatives at Unilever declined to comment beyond Fernandez’s remarks.
