Unilever today announced an evolution of its top management structure, creating improved alignment to fulfil its Path to Growth strategy. This stems from the review of Unilever’s top organization announced in February.
The main changes are the formation of two global divisions – one for Foods and one for Home and Personal Care (HPC) – and a strengthening of the Group’s global innovation capabilities.
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The key benefits arising from the changes are:
- Improved focus on Foods and HPC activities regionally and globally;
- Acceleration of decision making and execution through tighter alignment of brand strategy with operations;
- Strengthening innovation capability through more effective integration of research into the divisional structure and the creation of global innovation centers.
Unilever’s local companies will remain as the key interface with customers and consumers, responding directly to local market needs. The drive for increased global synergies will continue.
Two Division Directors will be appointed with executive authority and profit responsibility for worldwide operations. Each will head an Executive for their respective divisions.
The following changes in Board member responsibilities will take place:
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By GlobalDataPatrick Cescau, currently Financial Director, will become Foods Director, responsible for Unilever’s Foods business worldwide, with effect from January 1, 2001. Until that time he will lead the planning of the integration with Bestfoods and take immediate responsibility for Unilever’s North American foods operations.
Alexander Kemner, currently Foods Category Director, will support the integration process until his planned retirement in May 2001.
Keki Dadiseth will become Home & Personal Care Director with responsibility for HPC worldwide including DiverseyLever, effective January 1, 2001. Until that time he will focus on preparing plans for the implementation of the new structure.
Rudy Markham, currently Strategy and Technology Director, has become Financial Director with immediate effect while retaining responsibility for Information Technology.
Clive Butler, currently HPC Category Director, will become Corporate Development Director, effective January 1, 2001, embracing Corporate Strategy and Research and Corporate Relations.
The role of the Executive Committee remains unchanged, it is responsible for the overall results and performance of Unilever. Similarly, the responsibilities of Andre van Heemstra, Charles Strauss and Roy Brown are unaffected.
Unilever Chairman, Niall FitzGerald/Antony Burgmans, said: “Our 1996 reorganisation released much energy in Unilever but the business has continued to evolve making this review of our structures timely. These changes have been specifically designed to ensure effective execution of our Path to Growth strategy.”
- The introduction of Division Directors will align brand strategy with operations. Regional Presidents will remain responsible for profitability in their respective regions and will become members of either the Foods Executive or the HPC Executive.
- Most research and innovation will be integrated into the divisional structure. A small number of Global Innovation Centers will be progressively developed and will inter-link with Research and the worldwide brand innovation network.
- In developing and emerging markets some of the boundaries between the Business Groups will be re-drawn. Ice cream and Frozen Foods activities will be formed into a discrete global business unit within the Foods Division.
UNILEVER BACKGROUND: Unilever is one of the world’s largest
consumer products companies with sales in excess of $45 billion. It produces and markets a wide range of foods, home and personal care products. Unilever operates in 88 countries around the globe and employs 255,000 people.
In the United States, Unilever sales exceeded $8 billion in 1999. It employs 22,000 people and has 72 offices and manufacturing sites in 24 states. Two of Unilever’s 12 global Business Groups are headquartered in the United States. Some of their major products are: Foods – North America: Lipton teas, soups, recipe products and side dishes; Wish-Bone salad dressings; Lawry’s seasonings and specialty sauces; Imperial, Promise, Country Crock, “I Can’t Believe It’s Not Butter!”, Brummel & Brown spreads and sprays; Ragu pasta and pizza sauces; Five Brothers premium pasta sauces; Klondike, Good-Humor, Popsicle, Breyers and Ben & Jerry’s ice cream products, Gorton’s frozen seafood products and Slim-Fast nutritional and health snack products. Unilever Home and Personal Care – North America: Wisk, “all” and Surf laundry detergents; Snuggle and Final Touch fabric softeners; Sunlight dish detergents; Lever 2000, Caress, Dove and Shield bar soaps; Pond’s and Vaseline skin care products; Q-tips cotton swabs and cotton balls; Mentadent, Aim, Close-up and Pepsodent oral care products; Degree, Suave and Brut deodorant/toiletry products; Finesse, Salon Selectives, Suave, ThermaSilk, Aqua Net and Rave hair care products; and Calvin Klein and Elizabeth Arden cosmetic and fragrance products. In addition, DiverseyLever, a global professional cleaning business, operates in North America, supplying professional cleaning materials and services to institutional and industrial markets.
