Unilever reported 5.2% underlying sales growth in the third quarter of 2026, but sales volumes in its Foods business fell as competition and weaker developed-market retail demand weighed on grocery brands.

The FMCG group published its trading statement on 28 October. Total turnover reached €13.3 billion, a rise of 6.7% on a reported basis. Underlying group volume growth was 2.9%, while pricing contributed 2.3 percentage points to underlying growth.

The picture was considerably weaker in Foods. The division recorded underlying sales growth of just 0.1%, with a 1.1% fall in volume and a 1.3% contribution from pricing. The figures show that the positive group headline did not extend evenly to food categories.

Unilever said developing markets helped offset softness in developed-market food retail. Its condiments and cooking aids businesses were broadly flat, with the company pointing to heightened competition in US condiments and changes in demand for premium mayonnaise products.

For supermarket buyers, the division’s volume decline matters more directly than the group’s overall growth rate. It raises questions about the relationship between price increases, the strength of household demand and the ability of established brands to defend their shelf space against private label and faster-growing specialist competitors.

Unilever Food Solutions, which supplies professional foodservice customers, achieved low-single-digit growth, with North American business improving. That performance should not be confused with demand in supermarkets, where the company reported more difficult trading.

The proposed combination of Unilever Foods with McCormick remains on track, according to the company. For retail buyers, that planned transaction brings a separate question about future brand portfolios, commercial relationships and category competition. No new completion date should be inferred from the third-quarter figures alone.

GTN has covered the company’s wider role in its UK FMCG company ranking and previously reported the proposed McCormick–Unilever Foods transaction.

Attention will now turn to the next trading update and whether changes in innovation and pricing help restore food volumes in developed markets.

Editor’s Note: Based on Unilever’s 28 October 2026 third-quarter trading statement. GTN’s analysis separates group underlying sales growth from supermarket-relevant performance in the Foods division.