In a noteworthy development, Lindsell Train, a significant top-10 investor in Unilever, praises the recent executive transitions within the consumer goods powerhouse. Known for iconic brands such as Dove and Ben & Jerry’s, Unilever swiftly implemented changes at the top, appointing fresh faces to key leadership positions.
Nick Train, manager of the Finsbury Growth & Income Trust and co-founder of Lindsell Train, underscores the significance of these strategic moves, indicating Unilever’s recognition of the imperative for a «fresh perspective on all aspects of the business.» In an exclusive interview with Reuters, Train discloses that discussions about Unilever’s future steps have already transpired with the incoming chairman.
As the ninth-largest shareholder in Unilever, according to LSEG data, Lindsell Train wields considerable influence in financial circles. Despite its influential position, the firm typically refrains from public statements about individual companies in its portfolio.
Train’s remarks come on the heels of Unilever’s new CEO, Hein Schumacher, unveiling plans to streamline the business, acknowledging recent underperformance. Schumacher charts a strategic course centered on 30 key brands, constituting a substantial 70% of the company’s sales.
«We continually encourage FMCG (fast-moving consumer goods) companies to assess and re-assess their assets with a clear-eyed perspective, ensuring optimal management,» emphasizes Train in a statement.
This succession of leadership changes initiated with Schumacher succeeding Alan Jope, who faced challenges in his final year as Unilever CEO. After a failed attempt to acquire GSK’s consumer healthcare business, activist investor Nelson Peltz joined the board.
Schumacher’s July appointment was swiftly followed by the announcement that Ian Meakins, Chairman of Compass, would lead Unilever’s board from December, succeeding Nils Anderson.
«We maintain an open and productive dialogue with the company, having recently met with the new (Unilever) chairman to discuss the most beneficial next steps,» notes Train.
Unilever, approached for comment, declined to provide a statement. Last month, the company unveiled further management changes, including the departure of Hanneke Faber, president of nutrition, and the appointment of Priya Nair to head its beauty and wellbeing business. Matt Close, president of the ice cream business, will also exit after more than three decades with Unilever. Additionally, Unilever’s board decided to freeze Schumacher’s fixed pay for the next two years.
