Fernando Fernandez officially stepped into the role of Unilever’s CEO on March 3, 2024. As the leader of one of the world’s largest consumer goods companies, he is tasked with steering Unilever toward continued growth, innovation, and financial success. But what kind of leader is he? Where does he see the biggest opportunities for business expansion? And how does he want to be evaluated in the years to come? In a recent interview with Barclays analyst Warren Ackerman, Fernandez offered deep insights into his leadership style, strategic vision, and the company’s future direction. Below are some key takeaways from their discussion.
A Hands-On, Frontline CEO
When asked about his leadership style, Fernandez made it clear that he is a CEO who prefers to stay closely involved with Unilever’s brand strategies and market execution. He described himself as a “frontline CEO” who is dedicated to driving demand creation and ensuring that every brand and product category within Unilever earns its place in the portfolio.
“In 2024, we were number one in total shareholder return, which shows that our Growth Action Plan is working,” Fernandez noted. “This provides us with a strong foundation, but we must continue shifting our company outward and forward. My priority is ensuring that every single person at Unilever remains laser-focused on creating consumer demand.”
Unlocking Value Through Premiumisation
One of the key strategies Fernandez aims to pursue is premiumisation—developing and marketing higher-value products that drive both volume growth and profit margin expansion. He envisions a future where premium offerings make up a much larger portion of Unilever’s total business.
“In the long term, my goal is to have around 50% of our business in premium,” he stated. “Building a premium portfolio isn’t just about introducing expensive products—it’s about creating desirability at scale.”
To achieve this, Fernandez emphasized the importance of enhancing brand prestige, improving product quality, and refining marketing strategies to elevate consumer perception of Unilever’s top-tier brands.
Strengthening Unilever’s Top Brands Globally
Another aspect of Unilever’s growth strategy involves increasing the global presence of its strongest brands. Fernandez acknowledged that while progress has been made in this area, there is still room for improvement.
“We have taken a significant step forward with our top 30 brands, increasing our focus on them,” he explained. “But we can do even better. The best brands should be traveling faster and reaching more consumers worldwide.”
This approach underscores Unilever’s commitment to prioritizing its most successful products, investing in their growth, and expanding their market footprint internationally.
Executing at a Faster Pace
Efficiency and speed in execution are also at the core of Fernandez’s strategy. To unlock further value, Unilever is undergoing a significant organizational shift by “divisionalizing” its sales force in the company’s top 24 markets.
“This change will make Unilever much stronger,” Fernandez asserted. “It increases accountability by shifting more responsibility for delivery to the Business Group Presidents, ensuring we move with greater agility.”
By streamlining operations and enhancing accountability, Fernandez hopes to accelerate decision-making processes, allowing Unilever to respond more swiftly to market trends and consumer needs.
Seizing Growth Opportunities in Key Markets
When discussing growth opportunities for the second half of 2024, Fernandez highlighted three key markets: India, China, and Indonesia.
- India: Unilever is actively shaping its portfolio to align with shifting consumer preferences and emerging sales channels. This approach aims to maintain and strengthen the company’s market position.
- China: The strategy here is more selective, with a focus on adopting a more direct route to market. This ensures that Unilever’s offerings are better tailored to the evolving demands of Chinese consumers.
- Indonesia: Fernandez expressed optimism about Unilever’s performance in this market, noting that the company has been exceeding forecasts in recent months and seeing signs of steady growth.
Supporting these growth initiatives is what Fernandez described as Unilever’s “best innovation pipeline in years.” He intends to roll out these innovations at an accelerated pace to maximize their impact in key regions.
“I intend to scale up significantly,” he said. “We will ensure that major innovations reach our top 24 markets much faster than in the past.”
Staying Focused Amid Structural Changes
Fernandez also addressed the planned separation of Unilever’s Ice Cream business, reassuring stakeholders that the demerger remains on track for completion by the end of 2024.
“All workstreams are progressing as planned,” he confirmed. “This will not be a distraction for the management team.”
At the same time, Unilever’s broader portfolio strategy remains unchanged. The company will continue accelerating its Prestige and Wellbeing categories while pushing for a stronger premium presence in Europe and the U.S.
Measuring Success Through Financial Performance
When asked how he plans to maintain consistent financial performance in the coming years, Fernandez emphasized that success will ultimately be judged by key financial metrics such as revenue growth, profit margins, and overall shareholder returns.
“Our financial metrics have to say it all,” he stated. “We are confident that the changes we are implementing—whether it’s scaling up innovation, creating desirability at scale, or improving in-market execution—will drive Unilever to the level of growth that our investors demand and deserve.”
The Road Ahead for Unilever
Under Fernandez’s leadership, Unilever appears poised for a period of strategic transformation and accelerated growth. By emphasizing premiumisation, optimizing brand presence, and streamlining operations, he aims to enhance the company’s competitive edge in a rapidly evolving market.
While challenges undoubtedly lie ahead, Fernandez’s vision is clear: he wants Unilever to be faster, more agile, and more consumer-focused than ever before. If his strategies deliver the intended results, Unilever’s position as a global leader in consumer goods will only strengthen in the years to come.
