Unilever PLC (UL): Business Model Canvas [Dec-2025 Updated]

You're looking at the engine room of Unilever PLC right as they wrap up that major Ice Cream demerger, and frankly, the Q3 2025 figures tell a clear story: they are laser-focused on premiumization and cost-cutting. With Power Brands driving 78% of Q3 turnover and nine-month sales hitting €44.8 billion, their core strategy is showing results, especially as they chase that €650 million productivity saving. It's a complex machine balancing mass-market trust with high-margin Prestige Beauty, so check out the full Business Model Canvas below to see how they plan to hit their 3% to 5% full-year sales growth target.

Unilever PLC (UL) - Canvas Business Model: Key Partnerships

You're looking at the structure of Unilever PLC's external relationships as of late 2025, which is critical for executing its Growth Action Plan (GAP) and portfolio sharpening strategy.

Unilever PLC relies heavily on strategic supplier partnerships to meet its ambitious sustainability and productivity targets. The Supplier Climate Programme is a key mechanism here, focusing on reducing emissions from raw materials and packaging, which account for 63% of Unilever's total emissions. As of early 2025, suppliers representing 32% of procurement spend had registered for capability-building support. This program aimed to encompass about 300 key suppliers by the end of 2024, covering 44% of its Scope 3 GHG emissions. Furthermore, in areas like regenerative agriculture, Unilever and partners like CJ Selecta have invested R$32 million (€5 million) in the Renova Terra programme in Brazil, aiming to transition 45,000 hectares to regenerative practices by 2030, covering up to 90% of the soy footprint for Hellmann's mayonnaise in that region. Also, in India, a pioneering Power Purchase Agreement (PPA) deal involves Unilever and ten collaborative manufacturers, expected to yield 25% cost savings over 20 years.

The Partner to Win (PTW) program is central to co-developing innovation and driving productivity. This flagship initiative, reintroduced to align with the GAP, shifts procurement from transactional dealings to strategic, long-term collaborations focused on shared ambition. Historically, half of Unilever's innovation pipeline came from its suppliers.

Digital commerce and logistics partners are vital for accelerating growth in high-potential emerging markets. Unilever's eB2B system in Asia connects 500,000 small retailers, 600 distributors, and over 6,000 sales representatives. This platform currently processes 75,000 orders per day, supporting annualized sales of €2.5 billion ($2.67 billion USD), with projections to eventually drive more than €4 billion (approximately $4.28 billion USD) in annual turnover.

The underlying digital infrastructure supporting these operations is massive. Unilever's enterprise data platform holds 8 petabytes of data, fed by 25,000 data pipelines. The network handles an average of 240TB of data a week across more than 3 billion transactions.

You can see a breakdown of the scale and focus areas in the partnerships below:

Unilever PLC's focus on its top markets and Power Brands is reflected in how it structures these external relationships. The top 24 markets represent approximately 85% of Group turnover, and the 30 Power Brands account for over 75% of turnover as of Q3 2025.

The company's engagement extends to specific R&D and sustainability collaborations, though specific academic dollar amounts aren't always public. For instance, the PTW program facilitates co-development, as seen with partners like IVISMILE joining the Partner to Win 2025 initiative for co-innovation in oral care.

Key distribution channels are segmented by market maturity:

• - Developed Markets: Accounted for 44% of group turnover in Q3 2025.
• - Emerging Markets: Accounted for 56% of group turnover in Q3 2025.
• - E-commerce Acceleration: Focus on the B2B platform in Asia, targeting up to 1.5 million micro-retailers.
• - Digital Infrastructure: Network handles 240TB of data a week.
• - Sustainability Collaboration: Working with partners to reduce emissions from raw materials and packaging, which drive 63% of total emissions.

Finance: draft 13-week cash view by Friday.

Unilever PLC (UL) - Canvas Business Model: Key Activities

You're looking at the core engine room of Unilever PLC's operations as of late 2025. These activities are what drive the day-to-day value creation across their massive global footprint.

Global manufacturing and complex supply chain management remains a massive undertaking. A key focus here is efficiency, which is reflected in capital allocation decisions. For instance, Unilever is allocating at least 55% of its capital expenditure towards margin accretive initiatives. This focus on cost control and supply chain execution is designed to support margin resilience.

Brand building and marketing investment is a clear priority, fueled by strong gross margins. For the first half of 2025, Unilever's brand & marketing investment was up 40 basis points to reach 15.5% of H1 2025 turnover. Given the H1 2025 turnover was €30.1 billion, this translates to a significant investment level to drive competitive brand support and innovation.

The company is actively executing its cost-saving drive. The productivity programme, launched in 2024, is ahead of plan, with Unilever expecting to realize a cumulative c.€650 million of savings by the end of 2025. This is part of a larger goal, as the total productivity programme is anticipated to deliver total cost savings of around €800 million over three years, with the remaining €150 million expected in 2026.

Research and Development activities are geared toward product superiority and sustainability. A concrete example of this investment is the announcement in May 2025 of an £80 million investment to build in-house fragrance capabilities in the UK, including a new facility at Port Sunlight. Also notable is the groundbreaking finding Unilever uncovered linking the skin microbiome and mental wellbeing.

Portfolio optimization via acquisitions and divestitures is a constant process to sharpen focus. The year 2025 saw several key moves, including the major operational separation and planned demerger of the Ice Cream division, The Magnum Ice Cream Company (TMICC), expected to complete in the fourth quarter of 2025. Upon demerger, Unilever will retain a stake of c.19.9% in TMICC. On the acquisition front, Unilever signed an agreement to acquire the personal care brand Dr. Squatch in June 2025 for $1.5 billion, and also acquired Wild in February 2025 for $286M. Divestitures in 2025 included the sale of The Vegetarian Butcher in March, and the announced sales of Kate Somerville in October and Graze in December.

Here's a snapshot of the recent portfolio adjustments:

The investment in brands is supported by the underlying financial strength, as seen in the H1 2025 results:

• H1 2025 Turnover: €30.1 billion
• H1 2025 Gross Margin: 45.7%
• H1 2025 Underlying Operating Margin: 19.3%
• H1 2025 Underlying Sales Growth: 3.4%
• Power Brands contribution to turnover: Over 75%

These key activities show a clear focus on operational efficiency, targeted premium growth through M&A, and significant investment behind core brands, all while simplifying the overall structure ahead of the Ice Cream demerger.

Unilever PLC (UL) - Canvas Business Model: Key Resources

You're looking at the core assets that allow Unilever to operate at its massive scale, which is crucial for understanding its competitive moat. These aren't just assets on a balance sheet; they are the engines driving consumer desire across the globe. Honestly, the sheer breadth of these resources is what separates the giants from the rest.

The foundation of Unilever's current financial strength is clearly tied to its brand equity and its ability to move product. For the first nine months of 2025, the company reported a turnover of €44.8 billion. This financial scale is directly supported by the strength of its most valuable intangible assets.

The Portfolio of Power Brands is definitely the crown jewel here. These are the brands Unilever prioritizes for investment and innovation, and the numbers back that focus up: these Power Brands drove 78% of Q3 2025 turnover. That concentration of value in a select portfolio is a key strategic resource, allowing for focused marketing spend and innovation pipelines.

The physical reach of Unilever is another massive barrier to entry for competitors. Its Global Distribution Network is a logistical powerhouse, reaching over 190 countries. This means that whether you are in a major metropolitan area or a remote village, you are likely to find a Unilever product on a shelf.

Here's a quick look at the scale of the human and intellectual capital underpinning this operation:

The company's ability to defend and grow its market share relies heavily on its Intellectual Property and Proprietary Product Formulations. This is where the science translates into consumer preference. Unilever protects this through a substantial portfolio of intellectual property, currently holding over 20,000 patents and patent applications worldwide. This IP portfolio is the result of significant investment, with the company investing €949 million in R&D in 2023 alone.

This scientific muscle is housed in a dedicated global infrastructure. Unilever maintains its R&D presence through 6 Global R&D Innovation Centres and 12 Regional R&D Hubs. These facilities employ over 5,000 world-leading experts, including more than 500 PhDs, who are focused on breakthrough areas like biotechnology and next-generation packaging materials.

Finally, the sheer scale of the workforce is a key resource. The 128,000 employees estimate for 2025 [Outline] provides the human capital necessary to manage the global supply chain, sales force, and local market execution required to service 190+ countries.

Finance: draft 13-week cash view by Friday.

Unilever PLC (UL) - Canvas Business Model: Value Propositions

You're looking at the core promises Unilever PLC is making to its customers as of late 2025, right as the Ice Cream division is spinning off to sharpen the focus on Beauty and Personal Care.

Trusted, high-quality essential goods for daily use remain the bedrock. The company's Power Brands, which represent over 78% of Q3 2025 turnover, are the engine here, delivering underlying sales growth of 4.4% in that quarter. Overall group underlying volume growth was 1.5% in Q3 2025. For instance, Dove in Personal Care achieved high-single digit growth in the first half of 2025, and Dove hair specifically grew double-digit in Q3 2025.

The offering is definitely tiered, moving from mass-market essentials up to high-margin Prestige Beauty. Unilever is actively prioritizing these premium segments. While the overall Prestige Beauty division was reported as flat in the first half of 2025, specific brands within it are showing serious strength.

Unmissable product superiority driven by science and innovation is a stated focus, with brand and marketing investment rising to 15.5% of turnover in H1 2025. You see this in action with Dove hair's significant relaunch featuring new fibre repair technology. Vaseline delivered double-digit growth, supported by premium innovations like its Cloud Soft Light Moisturiser in India. The company is focused on developing superior technology and multi-year innovation platforms.

The commitment to purpose-led brands is translating into tangible results. Unilever confirmed it met its goal of ensuring all plastic packaging is either recyclable, reusable, or compostable by 2025. Sales for products featuring sustainable attributes, like biodegradable materials and refillable packaging for brands such as Dove and Persil, saw a 12% rise.

Finally, the convenience of global availability is massive; Unilever markets products in over 190 countries. The geographic split for Q3 2025 turnover shows 44% from developed markets and 56% from emerging markets. The US business, a key focus area, posted its fifth consecutive quarter of robust volume growth in Q3 2025.

Finance: draft 13-week cash view by Friday.

Unilever PLC (UL) - Canvas Business Model: Customer Relationships

Unilever PLC builds its customer relationships on a foundation of mass-market presence, reinforced by targeted digital precision. The company's products reach consumers in 190 countries where they are sold. This broad reach supports the overall business, which saw underlying sales growth of 3.4% in the first half of fiscal year 2025, with a turnover of €30.1 billion. The company expects full-year 2025 underlying sales growth to land within the 3% to 5% range.

The relationship strategy is heavily weighted toward its core brands, as the Power Brands contribute over 75% of turnover. For instance, in Q3 2025, Dove, the biggest brand, delivered 6% underlying sales growth.

Dedicated digital engagement is a clear priority, supported by a social-first mindset. Unilever is using technology to drive growth by listening to demand and responding faster across more channels. The company has implemented over 500 AI projects across the globe in the last decade.

The shift to premium and digital commerce is accelerating, which directly impacts how Unilever manages relationships in higher-value segments. This focus is supported by significant digital infrastructure, which handles an average of 240TB of data a week for over 3 billion transactions.

Here's a look at the scale supporting this digital-first customer interaction:

Social media and influencer marketing are central to creating desire at scale. Unilever is actively shaping its presence in culture and conversations. Data shows that 50% of consumers prefer to discover brands and products on social media. Furthermore, 1 in 2 consumers make an influencer-initiated purchase at least once a month. The use of AI in marketing is directly supporting this, for example, improving TikTok visibility for brands like Sunlight by 22.5%.

Customer service and feedback loops are integrated into the operational excellence drive. Unilever has developed specific capabilities for its customer sales teams, enabling new ways to improve customer performance and enhance relationships. The company is focused on leveraging partnerships with its customers and expanding into digital channels. For instance, innovations like the Recipe Intelligence system generated a 96% satisfaction rate with operators and tripled chat duration to 13 minutes in one specific application of AI.

Finance: draft 13-week cash view by Friday.

Unilever PLC (UL) - Canvas Business Model: Channels

You're looking at how Unilever PLC moves product to the end-user in late 2025, a period defined by portfolio simplification and a sharp pivot to high-growth areas.

The overall business saw a turnover of €14.7 billion in the third quarter of 2025, with the full-year underlying sales growth outlook reconfirmed in the range of 3% to 5%.

The distribution footprint is split, with developed markets accounting for 44% of Q3 2025 turnover, while emerging markets represented 56%.

Traditional retail: supermarkets, hypermarkets, and small local stores.

This remains the backbone, especially in emerging markets, though performance varies by region.

• Developed markets delivered underlying sales growth of 3.7% in Q3 2025.
• Europe saw underlying sales growth of 1.1% in Q3 2025, with volume declining by 6%.
• India delivered underlying sales growth of 2% in Q3 2025, reflecting a transitory negative impact from Goods and Services Tax reforms.

E-commerce and digital platforms (accelerating growth).

Unilever PLC is explicitly prioritizing digital commerce as part of its strategy to build a brand portfolio for the future.

While older data shows online sales reached 12% of sales in Q3 2021, the focus on digital channels is clear, evidenced by strong regional performance.

North America, a key growth engine, delivered volume-led underlying sales growth of 5.5% in Q3 2025, driven by Personal Care and Beauty & Wellbeing brands.

Specific high-growth brands within the digital space saw significant traction:

Direct-to-Consumer (D2C) channels for specialized brands.

The company is actively acquiring specialized brands to bolster its premium and high-growth segments, which often utilize D2C capabilities.

• The acquisition of personal care brand Dr. Squatch was completed in September 2025.
• The Beauty & Wellbeing segment, which includes many premium brands, grew underlying sales by 4.1% in Q1 2025.

B2B food service via Unilever Food Solutions.

This segment is managed separately from the core consumer business, though it contributes to the overall Foods category.

The Foods category represented 21% of Unilever PLC's revenue in Q3 2025.

For the B2B arm specifically, Unilever Food Solutions delivered low-single digit growth in Q3 2025, following a flat performance in H1 2025 (positive volume offset by negative price).

The last reported annual revenue for Unilever Food Solutions was $530.0 Million in 2024.

Rural distribution networks (e.g., Project Shakti in India).

Project Shakti remains a key last-mile channel, focusing on empowering rural women entrepreneurs.

As of 2025, Project Shakti empowers over 2 lakh (200,000+) women entrepreneurs in rural India.

The network operates across 21 States in India and has expanded to multiple countries across Asia, Africa, and Latin America.

The program has reached out to 100,000 villages and directly reached over three million rural consumers (based on historical program reach).

Unilever PLC (UL) - Canvas Business Model: Customer Segments

You're looking at the core groups Unilever PLC serves as of late 2025, which is a mix of massive global scale and targeted premiumization. Honestly, the split between developed and emerging markets is key to understanding their revenue base right now.

The foundation of Unilever PLC's customer base is the mass consumer globally, seeking everyday hygiene, nutrition, and personal care products. This segment is heavily captured by the company's Power Brands, which represented 78% of group turnover in the third quarter of 2025.

The geographic split shows a significant reliance on growth engines outside of mature economies:

Emerging Market consumers are a massive focus, making up 56% of Group turnover in Q3 2025. Unilever PLC is actively working to step up performance here, seeing a return to growth in key areas like Indonesia and China in Q3 2025.

Conversely, Developed Market consumers, representing 44% of turnover, continue to show strong momentum. These consumers drove 3.7% underlying sales growth in Q3 2025, led by North America's volume-led growth of 5.5%.

A crucial evolving segment involves affluent consumers, targeted through premium and Prestige Beauty brands, aligning with the stated strategy of prioritizing premium segments. The Beauty & Wellbeing division, which includes Prestige Beauty, delivered an underlying sales increase of 5.1% in Q3 2025.

The business also serves institutional customers through its B2B channels. For instance, Unilever Food Solutions, which caters to commercial kitchens and catering businesses, delivered low-single digit growth in Q3 2025.

You can see the strategic focus in the divisional growth rates for Q3 2025:

• Beauty & Wellbeing USG: 5.1%
• Personal Care USG: 4.1%
• Foods USG: 3.4%
• Home Care USG: 3.1%

Finance: draft 13-week cash view by Friday.

Unilever PLC (UL) - Canvas Business Model: Cost Structure

You're looking at the core expenses driving Unilever PLC's operations as they push through the final stages of their portfolio transformation, including the Ice Cream demerger expected in Q4 2025. The cost structure is heavily influenced by managing global supply chains and significant investment in brand equity.

Raw material and commodity costs are a constant pressure point, though productivity programmes are targeting savings in material costs to offset inflation. Unilever is collaborating with key suppliers through its Supplier Climate Programme to reduce emissions from raw materials, ingredients, and packaging by 2030.

Significant brand and marketing spend is essential to drive volume growth, with share gains in developed markets supported by a continued step-up in brand investment.

Global logistics and distribution expenses are being actively managed; productivity gains have been noted in logistics costs. Distribution costs are charged to the income statement as incurred.

Restructuring costs anticipated at around 1.2% of turnover for 2025, reflecting the ongoing productivity programme launched in 2024 to simplify the business. This is down from an earlier expectation of around 1.4% of Group turnover for 2025. The company reaffirms guidance that average restructuring costs will be around 1.2% of Group turnover over the three-year period from 2024 to 2026.

Operating costs for 128,000 employees are a major component, though the employee base is actively being streamlined; by Q1 2025, there was a reduction of around 6,000 full-time equivalents (FTEs) from the productivity programme. As of October 2025, Unilever has approximately 125K employees across 6 continents.

The productivity programme, aiming for total savings of around €800 million by the end of 2025, is a key element offsetting other costs. By the end of 2025, Unilever expects to realize around €650 million of these savings.

Here's a look at some key financial metrics guiding the cost and investment structure for 2025:

Operating costs also include staff costs for central functions like finance, human resources, and research and development, which are charged to the income statement as incurred.

Unilever PLC (UL) - Canvas Business Model: Revenue Streams

You're looking at how Unilever PLC brings in the cash as of late 2025. Honestly, the story is about focusing on the high-growth areas while managing the rest of the portfolio ahead of the Ice Cream demerger.

The primary revenue drivers remain the sales of Personal Care and Beauty & Wellbeing products, which are definitely the major growth engines right now. For the first half of 2025, Personal Care generated a turnover of €6.5 billion, showing strong underlying sales growth of 4.8% for that period. Beauty & Wellbeing followed closely, with a first-half turnover of €6.5 billion and underlying sales growth of 3.7%. The company is prioritizing these segments, signaling where future investment is headed.

Also contributing significantly are the sales of Home Care and Foods products. Home Care saw first-half turnover of €5.9 billion, though its underlying sales growth was more modest at 1.3% in H1 2025. Foods, which was previously called Nutrition, posted a turnover of €6.6 billion in the first half, with underlying sales growth at 2.2%. It's worth noting that Power Brands, which span across these groups, contributed 78% of turnover in the third quarter of 2025.

Looking forward, Unilever PLC expects its full-year 2025 underlying sales growth to land within the range of 3% to 5%, with the second half anticipated to show stronger growth than the first half.

For shareholders, a concrete cash return is the quarterly dividend. The Board declared a quarterly interim dividend for the third quarter of 2025 of €0.4528 per Unilever PLC ordinary share. This represented a 3% increase versus the Q3 2024 dividend.

Here's a quick look at the segment turnover and growth for the first half of 2025, which gives you the current revenue mix before the Ice Cream demerger completes in Q4 2025:

The business model also incorporates revenue from licensing and royalty fees from brand usage, though specific financial amounts for this stream aren't detailed in the latest public releases alongside the segment sales figures.

Finance: draft 13-week cash view by Friday.