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

When Unilever made Hein Schumacher its new chief executive last week, the appointment was received coolly.

Analysts and investors had been expecting a big name hire for the job – one of the most prestigious in the corporate world. Instead they got a boss from a Dutch dairy co-operative called FrieslandCampina.

Leading consumer analyst Bruno Monteyne said: ‘Investors we spoke to in recent weeks were hopeful for a more familiar name.’

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

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

The statement confirmed Peltz had got 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 roles and ultimately running the group’s Asia business. Peltz acquired Heinz stock in 2006 and joined the board until the firm was sold for £23 billion in 2013.

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

A turnaround specialist – he was the architect behind the break-up of Cadbury Schweppes and streamlined Heinz – Peltz could see Unilever was ripe for his aggressive ‘shedding and splitting’ strategy.

Unilever has struggled with sluggish growth and caused upset by continuing to sell goods in Russia despite its invasion of Ukraine.

Last year, it was blasted by a major shareholder, Fundsmith’s Terry Smith, for ‘ludicrous’ virtue-signalling on everything from sustainability to Knorr stock cubes ‘at the expense of focusing on the fundamentals of the business’.

Unilever’s current chief executive Alan Jope has, to critics, become a bungling boss who lacks direction. Then, in January last year, his attempt and subsequent failure to buy GSK’s consumer unit for £50 billion leaked in a press report. After that, the writing was on the wall for the Scotsman.

Peltz seized the moment. But he needed a general to implement his strategy. Just a month after Peltz took his board seat, Schumacher, 51, 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, analyst at Markets.com, said: ‘Peltz has his man. Schumacher is an acolyte.’

The most likely next move for the pair, according to Jefferies analyst Martin Deboo, is the sale of the food division, separating it from Unilever’s household products arm.

Many in the City are convinced Peltz and Schumacher can pull it off. Investors are likely to back the plan and Jope’s faster than planned departure signals the company is looking to move quickly. More management changes are expected.

Evidence suggests change is overdue and that the rot set in long before Jope. His predecessor Paul Polman tried to get the company to list in the Netherlands and abolish its London HQ. But huge investor opposition and pressure from this newspaper forced the pompous Polman into a climbdown.

People who have followed Schumacher’s career predict that, although he is not so well known as his predecessors, he will move decisively. They say his boyish good looks and easy-going manner mask a ruthless operator.

His restructuring at FrieslandCampina has involved asset disposals, factory closures and job cuts.

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

Maybe, finally, Unilever has the boss it sorely needs.