Unilever names Nelson Peltz to board, leading shares to rise

Unilever Plc appointed Nelson Peltz as a non-executive director, sending shares to their biggest gain in four months on expectations the activist investor will shake up the slow-growing consumer-goods giant.

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Peltz will join the board in July and become a member of the compensation committee, London-based Unilever said Tuesday. His Trian Fund Management has taken a 1.5% stake in the company, which makes everything from Magnum Ice-cream to Dove Soap.

The appointment looks set to heighten pressure on Chairman Nils Andersen and CEO Alan Jope to boost returns after a failed effort to buy the consumer division of GSK Plc infuriated some shareholders.

“Unilever has a double problem: structurally low growth categories, and a loss of investor confidence regarding management and the board,” Sanford C. Bernstein analysts led by Bruno Monteyne wrote in a note. Peltz’s appointment gives the company “a huge amount of credibility.”

Unilever shares rose as much as 7.7% in early trading, the biggest intraday gain since January.

Unilever had already started making changes to speed decision-making and improve accountability. In January, Jope announced plans to cut 15% of its senior managerial positions and made ice cream, beauty and personal care independent units. 

Ice Cream

The decision to also separate its Foods and Refreshments business into two separate entities will bring more transparency to the performance of its ice-cream operations, which include brands such as Ben & Jerry’s, Klondike and Magnum. That’s led to speculation among analysts the ice cream unit could be put up for sale.

Jope is seeking to reorganize the foods business around healthier habits, aiming to build a portfolio of plant-based meat and dairy alternative brands that will generate 1 billion euros ($1.1 billion) worth of revenue by 2025. He also has expanded in the fast-growing vitamins, minerals and supplements space with the acquisition of Olly Nutrition in 2019.

—Bloomberg News