Prominent investor Terry Smith accused Unilever of misleading him regarding its divestment strategy, particularly concerning the recent spin-off of its food business. Smith, who previously held a significant stake, stated that Unilever management assured him there would be no further disposals after the ice cream division demerged in 2025. However, the company later announced a deal to combine its food division with spice maker McCormick, creating a business with an enterprise value of nearly $66 billion.

Smith voiced concerns that this move resembles the tactics of activist investor Nelson Peltz, a Unilever board member, and contradicts the company's previous direction under former CEO Hein Schumacher. He expressed skepticism about the management team of McCormick leading the enlarged entity. Unilever defended the transaction, citing an "attractive valuation" and the creation of two stronger businesses, with the board unanimously approving the deal.

These criticisms emerge as Smith's Fundsmith Equity fund reported a 2.9% drop in value for the first half of the year, underperforming the MSCI World Index. Smith attributed this to a shift towards passive investments and indicated his fund would become more active in its portfolio management, having already reduced stakes in companies like LVMH and Nike.