In recent months, Unilever's chief executive, Fernando Fernández, has faced scrutiny regarding the company's previous management's approach to branding and marketing. Critics, including prominent fund manager Terry Smith, have accused Unilever of excessive virtue-signaling, particularly in relation to its marketing strategies. Smith notably criticized the company's focus on defining the purpose of its products, suggesting that such efforts indicated a disconnect from consumer needs. In response to these criticisms, Fernández has emphasized the importance of aligning brand principles with consumer demands, stating that he will not support any principles that are not rooted in consumer needs. Fernández has also highlighted the need for brands to deliver functional superiority and maintain a clear identity that resonates with consumers. He pointed to Dove, Unilever's largest brand, as an example of a product that successfully addresses customer concerns. When questioned about whether Unilever had previously lost touch with its consumers, Fernández refrained from criticizing past management decisions, instead focusing on his vision for the future of the company. He expressed a commitment to building brands that are relevant and valuable to consumers moving forward. The context of these statements comes amid ongoing discussions about Unilever's planned merger of its food division with American spice and seasoning company McCormick. This merger aims to combine well-known brands such as Marmite and Hellmann's with McCormick's French's mustard and Frank's RedHot sauces. However, some shareholders have raised concerns regarding the scale of the transaction, particularly in relation to potential debt levels and the challenges of integrating such large businesses. Despite these concerns, Fernández has defended the merger, arguing that it will create significant long-term value for shareholders, even if there is uncertainty in the short term. Additionally, Fernández praised Nelson Peltz, an American activist investor who joined Unilever's board after Trian Fund Management acquired a stake in the company in 2022. He described Peltz as a knowledgeable figure in the consumer sector, indicating that his expertise could benefit Unilever as it navigates its future direction. Fernández acknowledged that Unilever had been an inconsistent performer in the past but expressed optimism about the company's potential for growth and success through strategic decisions like the McCormick merger.