Unilever (ULVR.L) has reported that the ongoing government shutdown in the United States has not significantly impacted consumer sentiment, according to the company’s CEO. The shutdown, now in its fourth week, has raised concerns among businesses regarding potential disruptions to consumer spending and financial activities. Unilever is a global consumer goods company that owns brands such as Dove and TRESemme. It provides a wide range of food, personal care, and home care products.
Fernando Fernandez, Unilever’s CEO, noted a distinction in the market between households that own stocks and those that do not, suggesting this may explain the resilience of Unilever’s premium product range in the U.S. During a post-earnings conference call with analysts, Fernandez highlighted the company’s strategy of focusing on premium goods.
Unilever’s underlying sales in North America increased by 5.5% in the third quarter, marking the fifth consecutive quarter of volume-led growth. This growth is attributed to the company’s investment in higher-margin premium beauty and personal care products, which has attracted more affluent consumers in the local market. Fernandez also mentioned that Unilever’s success in North America is due to effective execution, alignment with consumer trends like wellbeing, and a portfolio that appeals to Gen Z and millennial consumers.
While the shutdown has had a limited impact on consumer sentiment, it did force Unilever to delay the timing of its ice cream business spin-off earlier this week. Despite this delay, Unilever remains confident in its strategy of focusing on premium goods, as evidenced by growth among key customers such as Amazon, Walmart, and Dollar General, indicating the company’s ability to reach a wide range of consumers, including those who are more value-conscious.