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Unilever is setting the stage for a major transformation, doubling down on its Beauty and Wellbeing, Personal Care, and North American markets. While the company anticipates a slow first quarter, CEO Hein Schumacher remains confident in a stronger 2025, fueled by strategic innovations and a streamlined business focus.

A Strategic Shift with High Stakes

Big changes are coming. Unilever is carving out a new path, emphasizing “fewer, bigger, better” innovations that drive volume while keeping consumer demand steady. The strategy aims to maximize impact rather than spreading resources thin.

Some areas will thrive, while others may struggle. Beauty and Wellbeing, along with Personal Care, are expected to be strong performers. On the other hand, Home Care and Nutrition could face headwinds. Meanwhile, the Ice Cream division is dealing with rising costs, making profitability an uphill battle—at least in the short term.

Schumacher is betting on twelve key initiatives to push Unilever forward. These projects are expected to shape the company’s direction in 2025, focusing on efficiency and high-value growth.

Ice Cream Spin-Off: A Game Plan in Motion

One of the biggest shake-ups is the planned separation of Unilever’s Ice Cream business by the end of 2025. The company is setting up for independent listings in Amsterdam, London, and New York, though Amsterdam will be the main hub.

Why this move? Analysts suggest that a standalone ice cream division could unlock value by allowing more focused management and strategic decision-making. The business has faced growing costs, particularly in raw materials, making profitability a challenge.

Inflation and Supply Chain Pressures Loom

Even as Unilever reshapes its future, economic realities can’t be ignored. Inflation is still making waves, with key raw materials like palm oil, surfactants, and cocoa seeing cost fluctuations. The company acknowledges these pressures but remains confident in its ability to adapt.

• Palm oil remains a critical input, with global supply challenges influencing prices.
• Surfactants, essential for cleaning products, continue to see cost volatility.
• Cocoa prices have surged, impacting Unilever’s confectionery and ice cream products.

Despite these hurdles, Unilever is leaning on brand investment and pricing strategies to maintain margins. The company’s approach suggests a careful balance—keeping prices competitive while managing costs efficiently.

The North American Market: A Key Growth Engine

Unilever is paying close attention to North America, a market ripe with opportunity. Growth in this region is expected to come from a mix of premium products, digital engagement, and expanding consumer demand.

Beauty and Wellbeing products are a major focus, aligning with trends favoring self-care and high-quality personal care brands. Digital and e-commerce channels will also play a bigger role, helping Unilever capture shifting consumer behaviors.

Looking ahead, the company’s success will hinge on its ability to execute these strategic bets while staying agile in a volatile global market. If Schumacher’s vision plays out, Unilever’s transformation could set a new benchmark in the industry.