Unilever to speed up sale of underperforming labels as part of major shake-up

Unilever's Chief Executive, Fernando Fernandez, has announced plans to expedite the sale of its underperforming brands and concentrate on its 30 power brands.

He stated that the FTSE-100 company would operate at a "faster pace" and identified approximately €1bn (£840m) worth of brands in its Foods Europe division that "don't fit well" with the company's portfolio, as reported by City AM.

These remarks are his first since assuming the role two weeks ago, following the departure of former CEO Hein Schumacher after less than two years.

Schumacher had initiated a comprehensive "productivity programme," which included significant job cuts and the spin-off of its ice cream division, encompassing the Ben & Jerry's brand.

Following a "full review" of separation options, it was decided that the ice cream business will be incorporated in the Netherlands and maintain its headquarters in Amsterdam, while also being triple-listed in New York, London, and Amsterdam.

The Financial Times reported that Unilever's board believed CFO Fernandez was "better suited" to implement the turnaround plan.

Speaking to Barclays analyst Warren Ackerman, Fernandez said: "Every brand in our portfolio, every category in our portfolio, has to earn the right to remain in our portfolio. I don't have any emotional engagement with any brand when it comes to portfolio management."

He added, "Time will tell what we do with our portfolio in the long run, but that's the position at this stage."

In addition to last year's sales of Unox and Zwan, Fernandez revealed that there is another £420m in smaller Unilever markets that the group does not believe it can scale and is likely to sell. Unilever's 30 power brands contribute to 70 per cent of its revenue.

In the full-year results released last month by Unilever, the consumer giant reported "exceptionally weak" guidance, according to analysts.