Consumer goods giant Unilever on Monday appointed Hein Schumacher to replace Alan Jope as chief executive from July 1.
Schumacher, 51, joined Unilever in October last year as non-executive director and is currently the chief of Dutch dairy business FrieslandCampina. His appointment marks the first time Unilever has given the top job to a non-Unilever executive since it poached Paul Polman from Nestle in 2008.
The London-based company in September said that CEO Jope planned to retire at the end of 2023. Schumacher, who was formerly at Royal Ahold NV, also worked for H.J. Heinz for a decade across the US, Europe and Asia. He began his career in finance at Unilever, before joining Royal Ahold NV.
“Hein is a dynamic, values-driven business leader who has a diverse background of experiences and an excellent track record of delivery in the global consumer goods industry. He has exceptional strategic capabilities, proven operational effectiveness, and strong experience in both developed and developing markets,” Unilever chairman Nils Andersen said.
“I would also like to take this opportunity to thank Alan for his leadership of Unilever. The changes he has made to the company’s strategy, structure and organisation leave Unilever far better positioned for success.”
Scotland-born Jope will depart Unilever after coming under fierce pressure from activist investors over a failed takeover bid.
He spent 37 years in total at the group and has held the top job since 2019. Under him, Unilever became a wholly British company at the end of 2020 after it completed a merger of its Dutch and British corporate entities.
Jope leaves after Unilever’s failed $50-billion bid at the start of 2022 for the former health care unit of drugmaker GlaxoSmithKline.
In response, Jope slashed around 1,500 management jobs worldwide in a major restructure that was widely seen as a bid to appease unhappy investors.
Schumacher said he was “delighted” to have been appointed to head Unilever.
“It is a business with an impressive global footprint, a strong brand portfolio, a talented team and an enviable reputation as a leader in sustainability,” he said.
“In my time serving on the Board, I have only become more convinced by the strength of Unilever’s fundamentals and its clear growth potential. I will be very focused on working with the Unilever team to deliver a step-up in business performance, as we serve the billions of people around the world who use its products every day.”
Billionaire activist investor Nelson Peltz, who heads investor Trian Partners, said he strongly supports Schumacher “as our new CEO and look(s) forward to working closely with him to drive significant sustainable stakeholder value.” Peltz become a Unilever board member in July after it was revealed early last year that he had built a stake in the company.
“I first met Hein when I served as a director at the H.J. Heinz Company from 2006 to 2013 and was impressed by his leadership skills and business acumen,” Peltz said.
Peltz, through his Trian Fund, holds a nearly 1.5 per cent stake in Unilever, making him the fourth largest shareholder, according to Refinitiv Eikon data.
Unilever had been considering internal and external candidates for the role.
Sources told Reuters in October that the candidates included finance chief Graeme Pitkethly, personal care division boss Fabian Garcia and Hanneke Faber, who heads the company’s nutrition group.
“It is good Schumacher has plenty of industry experience outside Unilever, particularly international,” said Tineke Frikee, a fund manager at Unilever shareholder Waverton Investment Management.
“I note though that his background is mainly in food, rather than beauty and personal care. This may lead the market to reduce the probability of a potential food spin-off.”
Unilever’s food business includes Ben & Jerry’s ice cream, Colman’s mustard, Hellman’s mayonnaise and Knorr stock cubes.
Some investors and analysts have speculated over the past year that Unilever might spin off what they feel is a weaker food business to focus on personal goods, beauty and home care.
Analysts at Jefferies and RBC Capital welcomed Unilever’s appointment of an external CEO, saying investors will support the move.
“We think Unilever needs a cultural and organisational shake up,” RBC analyst James Edwardes Jones wrote in a note.
Analysts at Jefferies said Schumacher brings “frontline experience.”
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