08.02.22
United Kingdom
www.unilever.com
Sales: $38.4 billion for household and personal products
Key Personnel: Alan Jope, CEO; Graeme Pitkethly, CFO; Conny Braams, chief digital and commercial officer; Reginaldo Ecclissato, chief supply chain officer; Fernando Fernandez, president, beauty and wellbeing; Sanjiv Mehta, president, Unilever South Asia and chair and managing director, Hindustan Unilever; Nitin Paranjpe, chief people and transformation officer and COO; Richard Slater, chief R&D officer; Maria Varsellona, chief legal officer and group secretary
Major Products: Beauty & Personal Care—Axe, Dove, Lifebuoy, Rexona, Sunsilk and Vaseline; Home Care—Cif, Comfort, Domestos, Omo and Seventh Generation
New Products: Beauty & Personal Care—Dove Care by Plants Deodorant, Dove Kids Care bath collection (Canada), Axe 100% Natural Origin Scent, Lifebuoy Charcoal and Mint, Rexona Clinical Protection, Vaseline Derma Care; Paula’s Choice (acquisition); Home Care—Cif Ecorefill, Comfort Ultimate Care, Lifebuoy BotaniTech
Comments: Corporate sales rose 4.5% last year to $62.1 billion. All three businesses—food, beauty and home care—posted gains. Like many other multinationals, Unilever is focused on winning in the largest markets with its biggest brands. The US, India and China, which accounted for 36% of turnover, all delivered strong and competitive growth in 2021. The US grew nearly 4% on top of a record growth year in 2020, while India and China grew well into double-digits, albeit against weaker comps. But sales declined 7.4% in Indonesia, Unilever’s sixth largest market.
eCommerce delivered another strong year, on the back of record growth in 2020. In total, the eCommerce business was up 44% with growth coming from all the main sub-channels—pure-play, omnichannel and business-to-business (eB2B). In just five years, this channel has gone from 2% of turnover to 13% in 2021. Developing Unilever’s portfolio into the higher growth spaces of hygiene, skin care, prestige beauty, functional nutrition and plant-based foods is another strategic choice. It is also one that made a meaningful contribution to performance in 2021. While organic growth is Unilever’s first priority, acquisitions also play an important role. Indeed, since 2017, 93% of M&A capital has gone into either prestige beauty, functional nutrition or skin care and other areas of beauty and personal care. Last year, for example, Unilever acquired Paula’s Choice. When that brand is included in results, prestige beauty sales top €1 billion.
In contrast, 98% of disposals by turnover were in slower growth food segments such as spreads and tea.
For all its focus on prestige beauty, fabric care still accounted for 14% of sales, just ahead of skin cleansing and hair care (11% each). Deodorant and skin care sales each represented 7% of sales, and home and hygiene, 5%.
Unilever stepped up investments in science and technology to strengthen the quality and efficacy of its products. The company insists 95% of the turnover tested was equal or better than the main competitor product, with 71% winning outright.
Reginaldo Ecclissato leads the supply chain and Unilever business operations as chief business operations officer. He had been chief supply chain officer.
For Q1 2022, sales rose 11.8%, aided by a 3.5% boost from currency. Underlying sales growth was 7.3%, boosted by an 8.3% price increase, offset by a 1% decline in volume.
According to Jope, the delivery of another solid quarter of sales growth builds on the improved growth momentum that Unilever achieved in 2021 and is underpinned by its increased focus on operational excellence as well as disciplined adherence to its chosen strategic priorities.
“We are maintaining strong investment in our top brands, growing our thirteen billion+ euro brands by 8.8% in the quarter,” he noted. “eCommerce sales now represent 14% of turnover following another quarter of strong double-digit growth. Our priority markets of the US, India and China all grew competitively. We continue to reshape our portfolio into high growth spaces, with prestige beauty and functional nutrition again growing strongly.”
New research ideas include finding ways to trigger the skin’s natural ceramide-producing processes.
“Our products contain skin-identical lipid precursors which act as the building blocks to allow the natural process of ceramide production to occur,” said Dr Andrew Mayes, senior skin research manager, Unilever R&D. “They provide the raw materials and then the skin can do the rest.”
New ideas aren’t limited to new product launches. Unilever is one of the world’s biggest consumers of palm oil. But palm oil, even responsibly sourced palm oil, can have devastating effects on the environment. To help remedy the situation, last month Unilever and Genomatica launched a venture to scale and commercialize alternative to palm oil and fossil fuel-derived cleansing ingredients. With growing demand for sustainably-sourced palm oil, this venture aims to deliver additional responsibly sourced palm oil alternatives to the market.
With $120 million jointly invested in the newly-formed initiative, and with other strategic investors expected to join, the venture will develop an alternative, plant-based ingredient using biotechnology. According to Unilever, the venture has huge potential to help power its growth and strengthen its supply chains by creating cost-competitive alternatives and reducing its dependence on a small number of feedstocks that can have high levels of volatility. It marks Unilever’s largest investment in biotechnology alternatives to palm oil to date.
“Unilever and Geno began collaborating in 2005 to accelerate the development of novel ingredients to improve the effectiveness of Unilever products,” said Richard Slater, chief R&D officer at Unilever. “Our two businesses share a mission to harness science and nature to accelerate the commercialization of sustainable materials that will drive real impact and change. With this new venture, we will be reinventing the chemistry of home and personal care products for the 21st Century.”
www.unilever.com
Sales: $38.4 billion for household and personal products
Key Personnel: Alan Jope, CEO; Graeme Pitkethly, CFO; Conny Braams, chief digital and commercial officer; Reginaldo Ecclissato, chief supply chain officer; Fernando Fernandez, president, beauty and wellbeing; Sanjiv Mehta, president, Unilever South Asia and chair and managing director, Hindustan Unilever; Nitin Paranjpe, chief people and transformation officer and COO; Richard Slater, chief R&D officer; Maria Varsellona, chief legal officer and group secretary
Major Products: Beauty & Personal Care—Axe, Dove, Lifebuoy, Rexona, Sunsilk and Vaseline; Home Care—Cif, Comfort, Domestos, Omo and Seventh Generation
New Products: Beauty & Personal Care—Dove Care by Plants Deodorant, Dove Kids Care bath collection (Canada), Axe 100% Natural Origin Scent, Lifebuoy Charcoal and Mint, Rexona Clinical Protection, Vaseline Derma Care; Paula’s Choice (acquisition); Home Care—Cif Ecorefill, Comfort Ultimate Care, Lifebuoy BotaniTech
Comments: Corporate sales rose 4.5% last year to $62.1 billion. All three businesses—food, beauty and home care—posted gains. Like many other multinationals, Unilever is focused on winning in the largest markets with its biggest brands. The US, India and China, which accounted for 36% of turnover, all delivered strong and competitive growth in 2021. The US grew nearly 4% on top of a record growth year in 2020, while India and China grew well into double-digits, albeit against weaker comps. But sales declined 7.4% in Indonesia, Unilever’s sixth largest market.
eCommerce delivered another strong year, on the back of record growth in 2020. In total, the eCommerce business was up 44% with growth coming from all the main sub-channels—pure-play, omnichannel and business-to-business (eB2B). In just five years, this channel has gone from 2% of turnover to 13% in 2021. Developing Unilever’s portfolio into the higher growth spaces of hygiene, skin care, prestige beauty, functional nutrition and plant-based foods is another strategic choice. It is also one that made a meaningful contribution to performance in 2021. While organic growth is Unilever’s first priority, acquisitions also play an important role. Indeed, since 2017, 93% of M&A capital has gone into either prestige beauty, functional nutrition or skin care and other areas of beauty and personal care. Last year, for example, Unilever acquired Paula’s Choice. When that brand is included in results, prestige beauty sales top €1 billion.
In contrast, 98% of disposals by turnover were in slower growth food segments such as spreads and tea.
For all its focus on prestige beauty, fabric care still accounted for 14% of sales, just ahead of skin cleansing and hair care (11% each). Deodorant and skin care sales each represented 7% of sales, and home and hygiene, 5%.
Unilever stepped up investments in science and technology to strengthen the quality and efficacy of its products. The company insists 95% of the turnover tested was equal or better than the main competitor product, with 71% winning outright.
Category Focus
Unilever is growing, but that’s not stopping the company from restructuring. In January, the company said it would cut about 1,500 management jobs. On July 1, it unveiled a simpler, more category-focused organization that is focused on five business units: Beauty & Wellbeing, Personal Care, Home Care, Nutrition and Ice Cream. In Happi’s areas of interest, Fernando Fernandez leads beauty and wellbeing. He had been EVP-Latin America. Fabian Garcia is president, personal care, responsible for skin cleansing, deodorants, and oral care. He had been president, North America. Finally, Peter ter Kulve will continue in his role as president home care, responsible for fabric care, home and hygiene, and water and air. In other personnel moves, Nitin Paranjpe took on the new role as chief tansformation officer & chief people officer, leading the business transformation, and heading the HR function. She had been chief operating officer.Reginaldo Ecclissato leads the supply chain and Unilever business operations as chief business operations officer. He had been chief supply chain officer.
For Q1 2022, sales rose 11.8%, aided by a 3.5% boost from currency. Underlying sales growth was 7.3%, boosted by an 8.3% price increase, offset by a 1% decline in volume.
According to Jope, the delivery of another solid quarter of sales growth builds on the improved growth momentum that Unilever achieved in 2021 and is underpinned by its increased focus on operational excellence as well as disciplined adherence to its chosen strategic priorities.
“We are maintaining strong investment in our top brands, growing our thirteen billion+ euro brands by 8.8% in the quarter,” he noted. “eCommerce sales now represent 14% of turnover following another quarter of strong double-digit growth. Our priority markets of the US, India and China all grew competitively. We continue to reshape our portfolio into high growth spaces, with prestige beauty and functional nutrition again growing strongly.”
New Ideas
To keep growing, Unilever is investing in new ideas. The Uncovery is Unilever’s beauty incubator platform that has rolled out an array of indie beauty brands in just the past year. These brands include Duck Lip Vibes, Ferver Skincare, For Every Type, Mojo Wellbeing, Natur-Alternatives, Skinsei and The Good Stuff. Nearly all of them are digital-first and focused on niche markets. For example, the Ferver Skincare lineup is built on fermented actives.New research ideas include finding ways to trigger the skin’s natural ceramide-producing processes.
“Our products contain skin-identical lipid precursors which act as the building blocks to allow the natural process of ceramide production to occur,” said Dr Andrew Mayes, senior skin research manager, Unilever R&D. “They provide the raw materials and then the skin can do the rest.”
New ideas aren’t limited to new product launches. Unilever is one of the world’s biggest consumers of palm oil. But palm oil, even responsibly sourced palm oil, can have devastating effects on the environment. To help remedy the situation, last month Unilever and Genomatica launched a venture to scale and commercialize alternative to palm oil and fossil fuel-derived cleansing ingredients. With growing demand for sustainably-sourced palm oil, this venture aims to deliver additional responsibly sourced palm oil alternatives to the market.
With $120 million jointly invested in the newly-formed initiative, and with other strategic investors expected to join, the venture will develop an alternative, plant-based ingredient using biotechnology. According to Unilever, the venture has huge potential to help power its growth and strengthen its supply chains by creating cost-competitive alternatives and reducing its dependence on a small number of feedstocks that can have high levels of volatility. It marks Unilever’s largest investment in biotechnology alternatives to palm oil to date.
“Unilever and Geno began collaborating in 2005 to accelerate the development of novel ingredients to improve the effectiveness of Unilever products,” said Richard Slater, chief R&D officer at Unilever. “Our two businesses share a mission to harness science and nature to accelerate the commercialization of sustainable materials that will drive real impact and change. With this new venture, we will be reinventing the chemistry of home and personal care products for the 21st Century.”