The drop in food brands will save Unilever a billion euros.
In the past, the company's CEO Fernando Fernandez went through a course to simplify the portfolio, which culminated in the merger of the grocery business with McCormick.
Unilever has now announced that organizational simplification, process redesign and technological development will bring it savings of one billion euros by the end of 2029.
From 2027, the company will gradually divide its remaining businesses into six regions with their own presidents and three categories: beauty and care, home products and more.
Taking into account €400-500m of sunk costs from the McCormick deal, it will receive an additional €500m for development, corresponding to +0.5 p.p. to the margins
Focusing on key brands will also allow Unilever to increase the value of its shares: they have already recovered from the fall of the first half of the year and are trading at almost $60.
FMCG reporting on Telegram | up to MAX.