By Yadarisa Shabong and Alexander Marrow (Reuters) -Unilever has not seen a significant impact on consumer sentiment so far from the government shutdown in its key U.S. market, the CEO of the consumer goods company said on Thursday. The shutdown is entering its fourth week amid a deadlock over funding, raising concerns among businesses about […]
Business
Unilever CEO says US government shutdown has not dented consumer sentiment
Audio By Carbonatix
By Yadarisa Shabong and Alexander Marrow
(Reuters) -Unilever has not seen a significant impact on consumer sentiment so far from the government shutdown in its key U.S. market, the CEO of the consumer goods company said on Thursday.
The shutdown is entering its fourth week amid a deadlock over funding, raising concerns among businesses about potential disruptions to consumer spending, travel and financial activities such as initial public offerings.
“We see a clear bifurcation in the market there between households that own stocks and households that don’t own stocks … I believe this explains probably the resilience of our premium portfolio in the U.S.,” Fernando Fernandez told analysts in a post-earnings conference call.
TAPPING INTO CONSUMER TRENDS
The group’s underlying sales in North America grew 5.5% in the third quarter, marking a fifth consecutive quarter of volume-led growth, as the owner of Dove and TRESemme haircare products has invested heavily in higher-margin premium beauty and personal care products in the local market, attracting more affluent consumers.
Fernandez told reporters that Unilever’s success in North America was down to great execution, tapping into clear consumer trends, such as wellbeing, and having a portfolio well-suited to Gen Z and millennial consumers.
He said Unilever was convinced that focusing on premium goods was the right strategy and noted that the company’s three fastest-growing customers – Amazon, Walmart and Dollar General – showed that Unilever can still reach less wealthy consumers.
“The fact that we are growing in Walmart and Dollar General reflects also that our portfolio is well-suited for more cash-strapped and value-conscious consumers,” Fernandez said.
The shutdown, however, did force Unilever earlier this week to push back on the timing of its ice cream business spin-off.
(Reporting by Yadarisa Shabong in Bengaluru and Alexander Marrow in London. Editing by Susan Fenton and Mark Potter)