Unilever is shifting its marketing strategy by increasing its investment in social media and accelerating the disposal of smaller food brands. In parallel, Irish grocery retailers are experiencing a surge in promotional spending, and private label products continue to gain traction globally.
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Unilever’s newly appointed CEO, Fernando Fernandez, has announced a significant pivot towards influencer-driven marketing to address consumer skepticism toward corporate messaging. The company plans to raise its social media marketing budget from 30% to 50% of total advertising spend, recruiting thousands of influencers worldwide. This strategy moves away from Unilever’s previous emphasis on brand purpose, as consumer trust increasingly shifts towards independent voices.
Alongside this marketing transformation, Unilever is continuing its portfolio rationalization. The company is set to divest underperforming food brands across Europe, with a combined valuation of approximately €1.5 billion. The focus remains on high-margin brands such as Knorr and Hellmann’s, which together account for 60% of the company’s food segment revenue. While Fernandez has not ruled out an eventual sale of the entire food division, he emphasized its strong profitability and cash generation potential.
To further optimize efficiency, Unilever has launched a cost-cutting initiative aimed at saving €800 million over the next three years. The program includes reducing 7,500 jobs and spinning off the ice cream business into a standalone entity.
In Ireland, Dunnes Stores maintains its leading position in the grocery retail sector as consumers increasingly leverage promotions to manage inflationary pressures. According to Kantar, take-home value sales rose by 4.9% in the four weeks leading up to February 23, with promotional spending increasing by 11.6%. Promotions now account for 23.9% of total grocery sales, driven by loyalty schemes and exclusive discounts.
Private labels continue to be a key growth driver, representing 45% of total grocery value sales and growing 3.8% year-on-year. Despite this, branded products outperformed the overall market with a 5.6% growth rate. Dunnes secured a 24.6% market share, with Tesco following at 23.9% and SuperValu at 20.4%.
Globally, the 2025 Shopper Study by Simon-Kucher highlights the rising preference for private labels. Across seven countries surveyed, 53% of consumers now prefer private label products. Spain, France, and the Netherlands lead the trend, with private label penetration reaching 64%, 60%, and 58%, respectively. Conversely, the US and Sweden present significant growth opportunities for private label expansion.
While price remains the most influential factor in consumer decision-making, quality and sustainability are playing an increasingly important role. The study found that 34% of respondents are prioritizing product quality, with sustainability concerns growing among younger consumers. If prices continue to rise, over 50% of consumers indicate they will further increase their reliance on private labels.
As competition intensifies, brands and retailers must adapt to the evolving consumer landscape, where private labels are no longer perceived as budget alternatives but as competitive, high-quality choices.
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