According to the Briton, Unilever has “lost the beat” and the company is obsessed with showing its sustainable course. Smith, who belongs to the top 15 of Unilever shareholders with his investment vehicle, expressed his criticism of the maker of, among other things, Dove soap and Magnum ice cream in his annual letter to investors. Unilever shares lost just over 5 percent of its value last year, making the group the worst-performing consumer goods fund in Fundsmith’s basket of shares.
In his letter, Smith criticized Unilever’s decision to stop selling Ben & Jerry’s ice cream in Israeli settlements in the occupied Palestinian territories. The investor speaks of an ‘excessive focus’ on matters that have nothing to do with Unilever’s core business of selling food and detergents. A number of American investors decided to sell their Unilever shares after Ben & Jerry’s decision.
Unilever did not comment on Wednesday. Smith’s comments follow earlier criticism from Lindsell Train Investment investor Nick Train, who spoke last year of Unilever’s “smashingly weak” performance. According to CEO Alan Jope, who succeeded Paul Polman in 2019, Unilever must pursue a higher social purpose than just making a profit with each of its brands.
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