Unilever North America
Amanda Sourry
November 2019
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Welcome to Unilever North America
Top Company for Working Mothers, working mother media #2 Best Company for Executive Women #6 Fatherly's 50 Best Places to Work for New Dads
Best Companies for New Dads, Working Mother Media Health & WellBeing Global Award Winner - Bronze US Best Employer for Healthy Lifestyles - Gold Canada's Best Diversity Employers Top Employer in Greater Toronto Area
Best Place to Work For Disability Inclusion Best Places to Work for LGBTQ Equality Best Companies for Multicultural Women, Working Mother Media
Diversity Best Practices Leading Inclusion Index Company Best of the Best for US Veterans Walmart 2018 supplier of the year: PC Walmart 2018 Supplier of the Year: Food
Walmart 2018 Supplier of the year: diversity Dollar general "2018" serving others vendor of the year
US leadership team
Ranch
Amanda Sourry | Esi Eggleston Bracey | Jostein Solheim | Terry Thomas | Eric Tiziani | Joey Bergstein |
President | EVP B&PC | EVP F&R | EVP CD US | VP Finance | CEO, Seventh Gen |
Rob Master | Alexandre Eboli | Mike Clementi | Alessandro Ventura | David Schwartz | ||||
VP Media/CMCO | VP SC | EVP HR, NA, | Head of IT | VP Legal General Counsel | ||||
Global CD, Global Markets | ||||||||
Context: How America is changing
Polycultural
Lack of trust
Income polarization |
Transparency |
Age bifurcation
Quest for wellness
Continued political divide
Increasing |
environmentalism |
The rise of "ubitech" | Social media driving | Omnichannel world | ||
cultural | ||||
disruption | ||||
North America business overview
$10BN
Turnover
10%
>8,000 People
14 Factories
11 Distribution centers
- NA Retail: 90%
- GLobal Business Units*: 10%
#1
Unilever country
90%
turnover | profit | cash |
16% | 16% | 19% |
% of global contribution
*Prestige, Unilever Food Solutions, Dollar Shave Club, Tigi, T2
Our customer footprint
Mass & Club | Grocery | Health & Beauty | ||
% Turnover: 40% | % Turnover: 30% | % Turnover: 10% | ||
Out of Home | Discounters | |||
e-Commerce | ||||
% Turnover: 10% | % Turnover: 5% | % Turnover: 5% |
Our division footprint
Beauty and Personal Care | Foods and Refreshment | Home Care | ||
>$6 bn ~60% | >$4 bn ~38% | $0.2 bn ~2% |
North America Turnover | North America Turnover | North America Turnover |
Focus on future-fit portfolio
Successful division portfolio reshape
50% | ||||||
Mix | 39% | |||||
2% | ||||||
Division | ||||||
59% | ||||||
50% | ||||||
2013 | 2014 | 2015 | 2016 | 2017 | 2018 | |
BPC | HC | F&R |
Market leading positions
Category | Relative | #1 Brand |
Market Share | ||
Skin Cleansing | 3.0 | |
Hair Care | 1.1 | |
Deodorants | 1.3 | |
Ice Cream | 1.1 | #2 |
Mayonnaise | 1.4 | |
Tea | 2.3 | |
Rice & Pasta Sides | 1.1 | |
Distinct divisional strategies
74% of BPC portfolio in momentum segments
Continue to drive leadership in | Turnaround Hair | ||
Deos and Skin Cleansing | |||
Future Fit | Reinvigorate | ||
Portfolio | Proposition | ||
F&R portfolio
focused on turnaround
Divest Spreads | Regain | Accelerate | Transform Tea | |||||||
Dressings | premium Ice | |||||||||
competitiveness | Cream | |||||||||
Notwithstanding, topline momentum challenging in 2019
USG
+0.9% | 5 Year | ||||||||||
CAGR | |||||||||||
1.5% | |||||||||||
1.0% | |||||||||||
0.8% | |||||||||||
0.4% | 0.4% | ||||||||||
0.2% | |||||||||||
2014 | 2016 | 2017 | 2018 | 2019 YTD | |||||||
2015 | |||||||||||
Key 2019 challenges
US Hair | Dressings competitive | Ice Cream | ||||
battleground | ||||||
List Price
Key 2019 successes: Growth momentum
Dove masterbrand
+4% Q3 YTD
Deodorant growth
+4% Q3 YTD
eCommerce growth
+47% Q3 YTD
Home Care growth
+21% Q3 YTD
And encouraging "green shoots"
Dressings growth
+4.0%
Dressings Q3 USG
Q2L12W
(60)bps +90bps
Market share change
Super premium IC brands | Tea transformation | ||
+35 bps
Super premium IC L12
Brands growing at | FY 2017 FY 2018 YTD 2019 |
>4%: |
Q3 2019 USG | Tea USG |
Consistent and significant improvement in profitability
+500 bps | ||||||
2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 |
H1 | ||||||
Underlying Operating Margin |
+300 bps | >100% | |||||
2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 |
H1 | ||||||
Cash Productivity |
Savings Programs
*All figures exclude Spreads & GBUs
Purpose-led,future-fit
PURPOSEFUL BRANDS | WINNING CHANNELS | DIGITAL | ||
TRANSFORMATION | ||||
COST AND OPERATIONAL DISCIPLINE
PEOPLE WITH PURPOSE AND AN AGILE ORGANIZATION
Purposeful brands: Performance and impact
Improve People's | Improve the Health of | Contribute to a Fairer | ||
Health, Confidence & | and More Socially | |||
the Planet | ||||
Well-Being | Inclusive World | |||
Plastics leadership
>50% PCR | 100% | 100% | Founding | |||
for our MCO | Recyclable, Reusable or | 2021 | Members | |||
2019 exit rate | of Packaging to be | How2Recycle Labels by | ||||
Compostable by 2025 | ||||||
Winning in winning channels: eCommerce
Differentiated models | Design for eCommerce | |
capabilities | ||
Lead market for digital transformation
Digital rewiring end to end
Data Driven
Marketing
Future Fit
Operations
Digital
Transformation
Digital
Supply Chain
Employee
Experience
Building meaningful
relations at scale through
DDM
+30-50% engagement rate lift
per campaign through DDM
People with purpose and agile organization
People with
purpose
80% of North America employees have attended a Purpose workshop
69% of North America employees believe they can live their purpose in Unilever
73% of North America employees agree their job contributes to the USLP and drives sustainable growth
Agile organization
Delivering highest value, iteratively
and incrementally
100% key leaders | Cross-functional |
formally trained by | innovation process |
end of 2019 | resulting in 25% |
faster time to market |
Our Purpose-Led, Future Fit Strategy is our Route to Winning in America
Unilever North America
Amanda Sourry
November 2019
Unilever US eCommerce
Ajay Salpekar
November 2019
The US eCommerce landscape for CPGs 5 years ago
+
The consumer's journey has also evolved
Discovery
87%
of shoppers
begin product
searches in
digital
channels
Convenience
2x
Searches for
same day
shipping have
doubled in 2
years
Omnichannel
x3
x 2
x1
-
Store + Store
only online onlinemobilStor
e
Source: Google 2018; Kantar Worldpanel; Salesforce & Publicis Sapient
eCommerce is already the leading growth driver for the US
5-Yr Market Growth Projection 2018-23 | Unilever eCommerce CAGR 2017-19 YTD |
In Categories where Unilever plays |
+$10BN
Total US
+$6.3BN
eCommerce
Total US
+40%
+30%
+50%
+70%
Diversification is the key to sustained eCommerce growth
Click & Collect | Ship-to-Home | Last Mile Delivery | ||
(National) | (Local) | |||
Digital partnerships serve ice cream on demand
Omnichannel approach: Online drives offline, and vice versa
CASE STUDY
Search campaign | |
on Retailer.com | 94% |
94% of units lift occurred in store vs. 6% online
6%
We will continue to invest in and design for this growth channel in ways that fit our brands
Unilever US eCommerce
Ajay Salpekar
November 2019
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Unilever plc published this content on 14 November 2019 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 14 November 2019 14:44:03 UTC