Unilever Aims for €1 Billion Savings by 2029
The company plans to simplify operations and deal with stranded costs from combining its food business with McCormick & Co, with underlying sales growth targeted at 4-6% annually
Unilever has announced plans to achieve €1 billion in savings by 2029 as part of its overhaul led by CEO Fernando Fernandez. The company aims to simplify operations and deal with stranded costs from combining its food business with McCormick & Co to achieve the savings.
The savings will be used to accelerate growth, with Unilever targeting underlying sales growth of 4% to 6% and volume growth of at least 2% annually. The company's food business, which includes brands such as Hellmann's mayonnaise and Knorr stock cubes, will be combined with McCormick & Co, resulting in Unilever's shareholders holding a 65% stake in the combined food company.
Unilever will present its strategy on Wednesday at its capital markets day, where it will outline its plans for the future. The company has previously announced the elimination of 7,500 positions in a broader restructuring effort in 2024.
In addition to its global restructuring efforts, Unilever is also investing in its research and development capabilities, particularly in India. The company will invest €40 million in India to strengthen its research and development capabilities and accelerate innovation in biosciences, biotechnology, and AI-led product development.
## Why it matters The overhaul of Unilever's operations is significant, as it aims to simplify the company's structure and deal with stranded costs. The combination of its food business with McCormick & Co will result in a more focused company, with a greater emphasis on personal care and household products. The investment in India's research and development capabilities also reinforces the country's position as a key global research hub for Unilever.
## What happens next Unilever's shareholders will be watching the company's progress closely, as it aims to achieve its savings targets and drive growth. The company's presentation on Wednesday at its capital markets day will provide further details on its strategy and plans for the future. With the investment in India and the combination of its food business with McCormick & Co, Unilever is positioning itself for future growth and success.
