In a rapidly changing consumer ecosystem, Unilever is refocusing its strategic lens, placing greater emphasis on brand scalability, portfolio realignment, and premiumization. Since stepping into the role of CEO in mid-2023, Hein Schumacher has undertaken the monumental task of steering Unilever into a more agile and growth-oriented direction, with a sharper focus on what makes the company successful: scaling fewer but stronger brands, aligning them with market trends, and fostering operational simplicity.

“We want to transform Unilever into a higher growth, simpler business,” Schumacher told Bloomberg’s Francine Lacqua in a recent interview. “It’s about having scalable brands that we can innovate behind with multi-year, significant programs. That’s how we leverage our scale for the better.”

Listen to our chat on Unilever’s brand realignment strategy to drive growth!

The Portfolio Review: A New Approach to Brand Management

One of the major components of Unilever’s brand strategy under Schumacher’s leadership has been a comprehensive portfolio review, completed in early 2024 alongside the company’s new leadership team. This review was pivotal in establishing what would be retained, what would be spun off, and which brands had the best potential for growth.

The decision to divest certain parts of the business, such as Dollar Shave Club and other non-core brands, was not made lightly. Schumacher explained that the overarching focus is on fostering scalable brands—brands that can grow through multi-channel innovation and that benefit from global reach. “For instance, Dove, which is our biggest brand at close to 7 billion euros, has been growing in double digits this year,” he shared. “Bigger brands allow us to do bigger things—more impactful marketing, better use of R&D, and quicker, more robust innovation.”

Scaling Through Focused Investments

Unilever’s new approach is rooted in targeted investment. Instead of spreading resources thin across numerous brands, the company aims to concentrate investment in fewer but higher-impact areas. The food division is a prime example of this shift. Unilever is focusing on condiments and cooking aids—led by two powerhouse brands, Hellmann’s and Knorr. “The idea is to move from a scattered portfolio to one that’s more coherent, with fewer brands that have a larger footprint,” Schumacher explained. “Condiments and cooking aids are categories where we see real opportunities to grow globally.”

Knorr, a 5 billion euro brand, and Hellmann’s, which holds a leading position in condiments, represent Unilever’s attempt to organize its portfolio along two high-growth pillars: scalability and global relevance. By doing so, Schumacher believes Unilever can better target resources, achieve market dominance in key verticals, and ensure that investments lead to long-term, sustainable growth.

Premiumization and Global Reach

Premiumization is another vital facet of Schumacher’s brand realignment strategy. As global consumer tastes evolve, there is growing demand for premium products—particularly in the health, beauty, and wellness categories. Unilever’s Prestige Beauty division has seen acquisitions of brands like Dermalogica and Hourglass in recent years, and Schumacher aims to internationalize these acquisitions. “We have acquired digitally native brands in the U.S., and now we’re scaling them internationally, bringing them to Europe, China, and India,” he said.

In this reshaped portfolio, premiumization isn’t just about acquiring high-value brands but ensuring these products are positioned appropriately for growth across multiple geographies. The expansion into markets like China and India signifies a commitment to tapping into regions with burgeoning middle classes where premium consumption is rising.

Divestments: Streamlining to Scale

To facilitate this more concentrated and growth-centric approach, Schumacher has led Unilever through a series of divestitures designed to sharpen its focus. Dollar Shave Club, water and air purification brands, and a handful of regional, smaller brands were all divested under Schumacher’s tenure. The goal was not merely to shed underperforming units but to make sure that Unilever’s portfolio was capable of benefiting from the company’s strengths—its international footprint, R&D prowess, and the ability to innovate at scale.

“We are not in a fire sale,” Schumacher emphasized, indicating a deliberate and considered approach to portfolio management. “We’re looking to evolve into those higher growth areas with scalable brands—it’s not about offloading assets at any cost but making strategic decisions about where Unilever can create value and where others might be better owners.”

Navigating Regional Market Dynamics

As part of his strategic transformation, Schumacher has also considered regional market dynamics to maximize brand potential. India stands out as a significant growth market where Unilever has a strong footprint, participating in 85% of households. Schumacher highlighted that mid-term opportunities in India—especially in hair care and hygiene—are vast due to rising GDP and increased disposable income. “India is arguably our number one opportunity globally,” Schumacher stated. “We are four to five times bigger than our closest competitor in hair care and play across all price tiers.”

While success in India offers opportunities, markets like Indonesia have proven more challenging. Schumacher openly admitted that Unilever was caught off guard by local competitors offering lower-priced alternatives and that there was a need for a “significant reset” to regain traction. This honesty reflects the pragmatism underpinning Schumacher’s strategy—acknowledging areas for improvement while doubling down on markets where Unilever is positioned for success.

Towards a More Simplified and Agile Unilever

At the core of Unilever’s shifting brand strategy is an aspiration for simplicity and agility. With the demerger of its ice cream business on the horizon, the company is transitioning into a leaner, more focused organization. Schumacher’s goal is to create a “lighter Unilever” that moves away from legacy structures and embraces flexibility, both in its operational footprint and its brand portfolio.

Schumacher’s belief is that Unilever can harness its core strengths—brand loyalty, scale, and R&D—to unlock new growth, but only by focusing where it truly matters. “It’s about fueling the right ideas, focusing on fewer but bigger brands, and getting them to scale globally,” he said.

This emphasis on operational simplicity also extends to organizational restructuring. In March 2024, Unilever announced a major restructuring program that would cut approximately 7,500 roles. The intention, according to Schumacher, is to ensure that the organization is aligned with a post-ice cream business model, while enhancing efficiency and agility to respond to market dynamics more effectively.

Looking Ahead: A Clear Vision

The strategy that Schumacher has laid out is about more than just cost-cutting or divestitures. It is about transforming Unilever into a company that is leaner, more focused, and more capable of responding to consumer needs on a global scale. By doubling down on high-growth verticals, concentrating resources on fewer, scalable brands, and ensuring agility within its operations, Unilever is positioning itself to thrive in a complex and evolving global market.

“We are putting our foot on the gas,” Schumacher said. “Our purpose is to brighten everyday life for all—making lives a bit better, a bit more convenient, and a bit more sustainable. That’s what excites me, and that’s the Unilever we are building.”

This transformation will take time, but Schumacher remains confident. By maintaining a steady focus on brand strength, operational agility, and premiumization, Unilever aims to navigate the headwinds of today while preparing for a stronger, more streamlined tomorrow.