Reckitt, Unilever streamline focus to drive growth
By Felicia Nwosu
Reckitt, renowned for producing household brands like Dettol and Durex, announced plans to become more focused by divesting parts of its homecare and infant-formula businesses. This strategic shift aims to concentrate on its top-performing “power brands.”
According to a Financial Times report, this move echoes Unilever’s recent strategy, announced last October to rejuvenate its performance by prioritizing major brands. Following this, Unilever sold several slow-growing beauty brands and, in May, its entire ice cream division. Additionally, the company plans to reduce its European office workforce by a third by 2025.
This trend reflects a broader industry shift among consumer goods companies, including Procter & Gamble and Danone, towards leaner portfolios. Analysts like Bruno Monteyne of Bernstein note that mature staple markets demand companies to excel in specific areas, given the efficiency saturation.
Conglomerates like Unilever are being compared to more focused competitors such as L’Oréal, which specializes in beauty, and Danone, with a portfolio emphasizing health-oriented products. This strategic realignment marks a significant evolution in the consumer goods sector, aiming for greater efficiency and market leadership.
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