Unilever Drops 3.7% Amid Strategic Shifts, CEO Changes

On April 7, 2025, Unilever's stock dropped by 3.7% in pre-market trading, reflecting investor concerns and market dynamics.

Unilever's recent decision to sell its plant-based meat brand, The Vegetarian Butcher, has sparked discussions about the company's strategic direction. The new CEO, Fernando Fernandez, cited two main reasons for the sale: the brand's unique supply chain and procurement model, which limits its scalability within Unilever's broader food portfolio, and the significant differences in technology and R&D capabilities compared to the rest of the company's products. This move is part of Unilever's ongoing efforts to streamline its portfolio and focus on core strengths.

Additionally, Unilever's stock has been under scrutiny due to its inclusion in Fundsmith's portfolio, a fund managed by Terry Smith. During Fundsmith's annual shareholder meeting, Smith discussed the challenges and opportunities facing Unilever, particularly in light of its management changes and strategic shifts. Smith highlighted the importance of strong management and effective capital allocation, noting that Unilever's new CEO, Fernando Fernandez, brings valuable experience and a fresh perspective to the company. This strategic realignment is seen as a positive step towards improving Unilever's performance and shareholder value.