Nelson Peltz gets his man… now will Unilever boss sell off food?

When Unilever appointed Hein Schumacher as its new CEO last week, the appointment was received coolly.

Analysts and investors had expected a big name for the job – one of the most prestigious in the business world. Instead, they got a boss from the Dutch dairy cooperative FrieslandCampina.

Leading consumer analyst Bruno Monteyne said: “Investors we spoke to in recent weeks were hoping for a more familiar name.”

But one man knew exactly what Schumacher stood for: famed billionaire and Unilever investor Nelson Peltz – whose daughter Nicola married Brooklyn Beckham in a lavish ceremony last spring.

Peltz, who is sparing in his dealings with the media, told The Mail shortly after the appointment on Sunday: ‘I knew him when he worked at Heinz. I was impressed by his leadership skills and business acumen.’

The statement confirmed that Peltz got hold of his man. The two have worked closely together before. Schumacher rose through the ranks at Heinz for more than a decade until 2014, holding a number of senior positions and ultimately leading the group’s Asia operations. Peltz acquired Heinz shares in 2006 and joined the board of directors until the company was sold in 2013 for £23 billion.

Now the two are back together at Unilever. Peltz set his sights on the consumer giant early last year. He took a stake through his investment company Trian Partners and had worked his way up to the board by the summer.

As a turnaround specialist – he was the architect behind the break-up of Cadbury Schweppes and the streamlined Heinz – Peltz could see that Unilever was ripe for its aggressive divest and break-up strategy.

Unilever struggled with slow growth and caused turmoil by continuing to sell goods in Russia despite the invasion of Ukraine.

Last year it was slammed by a major shareholder, Fundsmith’s Terry Smith, for “ridiculous” virtue signaling on everything from sustainability to Knorr stock cubes “at the expense of focusing on the company’s fundamentals.”

Unilever’s current CEO Alan Jope has become a clumsy boss with no direction, according to critics. Then, in January last year, his attempt and subsequent failure to buy GSK’s consumer unit for £50bn was leaked in a press release. After that it was writing on the wall for the Scot.

Peltz seized the moment. But he needed a general to carry out his strategy. Just a month after Peltz took his board seat, the 51-year-old Schumacher was appointed. He quickly impressed with his clear vision. So when Jope announced his retirement in September, Schumacher was already an obvious candidate to replace him. Neil Wilson, an analyst at Markets.com, said, “Peltz has his man. Schumacher is an acolyte.’

The most likely next step for the pair, according to Jefferies analyst Martin Deboo, is to sell the food division, separating it from Unilever’s home products division.

Many in City are convinced that Peltz and Schumacher can do it. Investors are likely to support the plan, and Jope’s quicker-than-planned exit indicates the company wants to act quickly. More management changes are expected.

There are indications that change is too late and the rot started long before Jope. His predecessor Paul Polman tried to get the company listed on the stock exchange in the Netherlands and to close its London headquarters. But enormous resistance from investors and pressure from this newspaper forced the pompous Polman to climb down.

People who have followed Schumacher’s career predict that, while not as well known as his predecessors, he will move decisively. They say his boyish good looks and easygoing demeanor mask a ruthless operator.

His restructuring at FrieslandCampina included asset divestments, factory closures and job cuts.

Former Asda chief executive Allan Leighton, who has worked with Schumacher, said: ‘He tells it like it is. In that respect he is very Dutch. Very practical: ‘This is how it is and this is what we’re going to do about it.’ ‘

Maybe Unilever finally has the boss it desperately needs.