★ WIDE MOAT STOCKS & COMPETITIVE ADVANTAGES ★
VOL. XCIV, NO. 247
Stock Profile
Unilever PLC (ULVR) Moat Analysis
Unilever PLC
ULVR · London Stock Exchange
Weighted average of segment moat scores, combining moat strength, durability, confidence, market structure, pricing power, and market share.
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Overview
Unilever PLC is a global consumer-goods company organised around four continuing Business Groups after completing the Ice Cream demerger on 6 December 2025. H1 2026 continuing turnover was EUR 25,623m and underlying operating profit was EUR 5,193m; Power Brands represented 78% of turnover and delivered 6.0% underlying sales growth, including 5.4% volume. The evidence supports brand-trust moats in all four groups, while low switching costs, retailer control and private-label and local-brand competition prevent treating distribution, R&D or supply-chain scale as separate durable moats. Foods is the weakest moat: US-condiments share loss, only 1.2% H1 growth and the agreed combination with McCormick reduce durability.
Primary segment
Personal Care
Market structure
Oligopoly
Market share
—
HHI: —
Coverage
4 segments · 8 tags
Updated 2026-08-23
Segments
Beauty & Wellbeing
Branded beauty, hair care, skin care, prestige beauty and wellbeing consumer products
Revenue
25.4%
Structure
Competitive
Pricing
moderate
Share
—
Peers
Personal Care
Branded personal care and hygiene (deodorants, skin cleansing, oral care)
Revenue
26.6%
Structure
Oligopoly
Pricing
moderate
Share
—
Peers
Home Care
Branded home care (laundry detergents, fabric enhancers, household cleaning and hygiene)
Revenue
23.4%
Structure
Oligopoly
Pricing
moderate
Share
—
Peers
Foods
Branded foods (condiments, cooking aids, mini-meals) and foodservice ingredients (Unilever Food Solutions)
Revenue
24.6%
Structure
Competitive
Pricing
weak
Share
—
Peers
Moat Claims
Beauty & Wellbeing
Branded beauty, hair care, skin care, prestige beauty and wellbeing consumer products
Revenue share uses H1 2026 turnover of EUR 6,509m against EUR 25,623m continuing-operations turnover. Operating-profit share uses EUR 1,269m underlying operating profit against EUR 5,193m across the four Business Groups. H1 underlying sales growth was 5.9%, led by 4.5% volume and 1.3% price, and underlying operating margin was 19.5%. Source: https://www.unilever.com/files/unilever-q2-2026-results-full-announcement.pdf
Brand Trust
Demand
Brand Trust
Strength
Durability
Confidence
Evidence
Power-brand portfolio and strong category positions support repeat purchase and premiumisation in hair, skin, and wellbeing.
Brand Trust moat: definition, examples, and stocks
Erosion risks
- Premium beauty competition intensifies (incumbents and indie brands)
- Shifts in consumer preferences and influencer-driven fragmentation
- Private label trade-down during weak consumer demand
Leading indicators
- Turnover-weighted market share movement (rolling 12 months)
- Price/mix vs volume growth in the segment
- Share of sales from new innovations and premium lines
Counterarguments
- Switching costs are low for most beauty SKUs
- Digital-first challengers can scale faster than incumbents
Personal Care
Branded personal care and hygiene (deodorants, skin cleansing, oral care)
Revenue share uses H1 2026 turnover of EUR 6,817m against EUR 25,623m continuing-operations turnover. Operating-profit share uses EUR 1,513m underlying operating profit against EUR 5,193m across the four Business Groups. H1 underlying sales growth was 4.8%, led by 4.1% volume and 0.7% price, and underlying operating margin was 22.2%. Source: https://www.unilever.com/files/unilever-q2-2026-results-full-announcement.pdf
Brand Trust
Demand
Brand Trust
Strength
Durability
Confidence
Evidence
Large portfolio of everyday-use personal care Power Brands with leading positions in key categories supports habitual repurchase.
Brand Trust moat: definition, examples, and stocks
Erosion risks
- Private label gains in deodorants and cleansing in trade-down cycles
- Regulatory restrictions on ingredients and claims
- Price wars led by major peers
Leading indicators
- Category share in deodorants and skin cleansing
- Net price/mix vs volume growth
- Retailer distribution and shelf share for Power Brands
Counterarguments
- Consumers can switch readily between brands on promotion
- Retailers can shift visibility toward private label
Home Care
Branded home care (laundry detergents, fabric enhancers, household cleaning and hygiene)
Revenue share uses H1 2026 turnover of EUR 5,992m against EUR 25,623m continuing-operations turnover. Operating-profit share uses EUR 944m underlying operating profit against EUR 5,193m across the four Business Groups. H1 underlying sales growth was 7.6%, led by 7.4% volume and 0.2% price, and underlying operating margin was 15.8%. Source: https://www.unilever.com/files/unilever-q2-2026-results-full-announcement.pdf
Brand Trust
Demand
Brand Trust
Strength
Durability
Confidence
Evidence
Leading laundry and cleaning Power Brands support repeat purchase where performance perception matters (stain removal, hygiene, fragrance).
Brand Trust moat: definition, examples, and stocks
Erosion risks
- Category commoditisation and private label quality improvement
- Regulatory constraints on formulations (for example, chemicals, packaging)
- Disruption from new formats (sheets, concentrates)
Leading indicators
- Share trend in fabric cleaning and home hygiene
- Innovation adoption (new formats, fragrance platforms)
- Gross margin stability through commodity cycles
Counterarguments
- Performance claims can be matched by peers
- Shelf space and promotions are heavily retailer-controlled
Foods
Branded foods (condiments, cooking aids, mini-meals) and foodservice ingredients (Unilever Food Solutions)
Revenue share uses H1 2026 turnover of EUR 6,305m against EUR 25,623m continuing-operations turnover. Operating-profit share uses EUR 1,467m underlying operating profit against EUR 5,193m across the four Business Groups. H1 underlying sales growth was 1.2%, entirely from volume with flat price; underlying operating profit declined 4.3% and margin was 23.3%. Source: https://www.unilever.com/files/unilever-q2-2026-results-full-announcement.pdf
Brand Trust
Demand
Brand Trust
Strength
Durability
Confidence
Evidence
Global food Power Brands (notably Knorr and Hellmann's) create consumer pull; Unilever Food Solutions adds credibility and reach in foodservice.
Brand Trust moat: definition, examples, and stocks
Erosion risks
- Private label share gains in condiments and cooking aids
- Health and regulatory shifts (salt, sugar, additives) constrain formulations
- Commodity inflation (oils, eggs) compresses margins
Leading indicators
- Category share for Knorr and Hellmann's
- Foodservice recovery and Unilever Food Solutions growth
- Price/mix vs volume trend
Counterarguments
- Taste and value are easy to replicate with private label
- Retailer bargaining power is higher in foods than in beauty
Evidence
Our Power Brands delivered a good performance, with many achieving double-digit growth
Directly supports current demand strength across the Beauty & Wellbeing Power Brand portfolio.
Dove, Sunsilk and Vaseline, which all delivered double-digit volume-led growth
Current volume-led growth across several major brands supports continuing consumer pull without relying on price alone.
Growth was led by our Power Brands, which accounted for 90% of turnover.
Power Brand concentration and segment growth support a brand-led demand advantage.
The US grew high-single digit supported by share gains
Current US growth and share gains support the continued relevance of the Personal Care brand portfolio.
Performance was led by our Power Brands, accounting for 82% of turnover.
Power Brand concentration and positive volume growth support a brand-led demand advantage.
Showing 5 of 8 sources.
Risks & Indicators
Erosion risks
- Premium beauty competition intensifies (incumbents and indie brands)
- Shifts in consumer preferences and influencer-driven fragmentation
- Private label trade-down during weak consumer demand
- Private label gains in deodorants and cleansing in trade-down cycles
- Regulatory restrictions on ingredients and claims
- Price wars led by major peers
Leading indicators
- Turnover-weighted market share movement (rolling 12 months)
- Price/mix vs volume growth in the segment
- Share of sales from new innovations and premium lines
- Category share in deodorants and skin cleansing
- Net price/mix vs volume growth
- Retailer distribution and shelf share for Power Brands
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