Day 9: Whales, Wax, and Royal Roads: How Unilever and Shell Built Empires

Thanks for continuing our journey in the From the Unexpected to the Unstoppable – How Bold Pivots Built Business Legends blog series! So far, we've perused centuries of corporate reinvention, witnessing the stories of IBM, Netflix, Avon, Wrigley, 3M, Airbnb, Nokia, Samsung, Nintendo, and Yamaha.

Each narrative, in its own compelling way, has underscored the profound truth that corporate identity is fluid, and enduring success hinges on the courage to pivot. Today, as we embark on Day 9 of our series, we turn our attention to two corporate titans whose global reach and diverse portfolios are so immense, their humble, almost niche, beginnings seem utterly improbable: Unilever and Shell.

These are not merely stories of pivots from one industry to another, but narratives of massive, strategic diversification from basic commodities into vast, interconnected global empires. Their journeys, spanning over a century and enduring countless economic cycles, demonstrate the power of visionary leadership to leverage foundational strengths, form strategic alliances, and constantly expand into new markets. For leaders at all levels, their evolution provides a masterclass in building resilience, scale, and lasting relevance in an ever-changing world.

Unilever: From Margarine and Soap to Consumer Goods King

Imagine two seemingly disparate products from the late 19th century: margarine, a relatively new butter substitute, and soap, a burgeoning necessity for public health and hygiene. From these two humble commodities, one of the world's largest and most influential consumer goods companies would emerge. Unilever was formally born in 1929 through the strategic merger of two distinct European powerhouses: Margarine Unie, a Dutch producer of margarine, and the British soap maker Lever Brothers.

The economic climate of the late 19th and early 20th centuries was characterized by rapid industrialization, burgeoning populations, and the rise of mass-produced consumer goods. This era saw increasing urbanization and a greater focus on hygiene and nutrition.

Lever Brothers, founded by William Lever in 1884, had revolutionized the soap industry with Sunlight Soap, making hygiene affordable and accessible to the masses. Lever was a pioneer in branding and advertising, building a strong connection with consumers. Simultaneously, Margarine Unie, a consortium of leading European margarine producers, grew out of the innovations in the butter industry, providing an affordable alternative.

Both companies, though in different sectors, shared a common purpose: providing essential, affordable household products to a mass market. Their merger was a testament to the power of combining complementary strengths to create a diversified giant.

Today, Unilever stands as a truly global multinational consumer goods leader. With annual revenues exceeding approximately $65-70 billion, it employs over 127,000 people in more than 190 countries. Its vast brand portfolio spans baby food, beauty products, bottled water, breakfast cereals, cleaning agents, condiments, dairy products, energy drinks, healthcare and hygiene products, ice cream, instant coffee, instant noodles, pet food, pharmaceuticals, soft drinks, tea, and toothpaste. It is the largest producer of soap in the world. Its household names include Dove, Lipton, Knorr, Hellmann’s, Magnum, Omo/Persil, and Rexona/Degree. 3.4 billion people use its products every day.

Shell: From Kerosene and Shells to Energy Supermajor

Our next story begins with two distinct ventures born in the late 19th century, each rooted in markedly different origins yet destined to merge into a global energy powerhouse. The Royal Dutch Petroleum Company was founded in 1890 with a clear focus: to develop oil fields in Sumatra, then part of the Dutch East Indies. This enterprise aimed to tap into the rising demand for petroleum products, setting the stage for industrial expansion.

Meanwhile, across the North Sea in London, the Shell Transport and Trading Company was established in 1897 by Marcus Samuel, a merchant whose early fortune came from selling ornamental seashells imported from the Far East. However, Samuel quickly pivoted as he recognized the rapidly growing market for kerosene, a cleaner and more efficient lighting fuel than whale oil. Capitalizing on this opportunity, he innovatively repurposed aging tankers to transport kerosene through the Suez Canal, dramatically improving delivery times to Europe and beyond. The company’s name, Shell, and its distinctive scallop logo—both inspired by Samuel’s family business—became enduring symbols of a growing brand.

The late 19th and early 20th centuries marked the dawn of the modern oil industry. Kerosene was transforming lighting worldwide, replacing whale oil, while expanding global trade routes opened new markets. Amidst this boom, fierce competition emerged, most notably from John D. Rockefeller’s Standard Oil, whose dominance challenged many rivals. Facing these pressures, Royal Dutch Petroleum and Shell Transport and Trading made a strategic decision in 1907 to form a joint venture, combining their resources and expertise to compete on a global stage. This alliance laid the foundation for what would evolve into one of the world’s largest integrated energy companies.

Over the ensuing decades, the merged entity expanded beyond kerosene into gasoline, lubricants, and petrochemicals, growing in tandem with the rise of the automobile and industrial economies. Through the mid-20th century, Shell became synonymous with innovation in oil exploration and refining, extending its reach worldwide despite geopolitical upheavals and fluctuating oil markets. The company adapted to challenges such as the oil crises of the 1970s by investing in diversification and technology.

Entering the 21st century, Shell faced the imperative of transforming in response to growing environmental concerns and the global shift toward sustainability. It expanded aggressively into natural gas, biofuels, and renewable energy technologies, positioning itself as a leader in the energy transition. In January 2022, reflecting its global identity and forward-looking strategy, Shell moved its headquarters from The Hague to London and formally changed its legal name to Shell plc, symbolizing a new chapter focused on delivering cleaner energy solutions while maintaining its significant traditional oil and gas operations.

This journey from two niche 19th-century businesses—one rooted in oil fields, the other in seashells—to a diversified energy titan exemplifies adaptability, strategic alliance, and visionary leadership spanning more than a century of profound economic and technological change.

Today, with a market cap of some $212 billion, Shell plc ranks among the world’s largest integrated energy companies. Its annual revenues fluctuate between $250 billion and $350 billion, depending on market conditions. Employing roughly 96,000 people across 70+ countries, Shell’s business segments encompass Upstream (exploration and production), Integrated Gas and Renewables & Energy Solutions (including liquefied natural gas, hydrogen, biofuels, wind, solar, and electric vehicle charging), and Marketing (fuels, lubricants, and chemicals). Shell operates an extensive global supply chain, with refineries, chemical plants, and retail outlets worldwide, positioning it as a key player in the ongoing global energy transition, while maintaining a significant footprint in traditional fossil fuels. It is the world's largest mobility retailer by number of sites serving 33 million customers daily at 47,000+ retail stations and 54,000+ public EV charge points at Shell stations, on-street and at destinations.

The Grand Evolutions of Unilever and Shell: From Niche to Nexus

The transformations of Unilever and Shell are not about single pivots, but about continuous, massive-scale diversification and adaptation.

For Unilever, the evolution has been a masterclass in strategic merger and brand portfolio management. The 1929 merger combined complementary strengths in fats and oils (margarine) with detergents (soap), along with a powerful distribution network. From this foundation, Unilever pursued relentless growth via strategic acquisitions and organic expansion, building a vast portfolio of food, beverage, home care, and personal care brands. They understood their purpose as meeting diverse consumer needs, and this was reflected in acquiring and managing a wide range of distinct brands—each with its own identity, yet all benefiting from Unilever’s global scale and operational excellence. Their agility lies in adapting to shifting consumer preferences and societal trends by adding new brands or divesting outdated ones, all while maintaining a pulse on global markets.

Shell’s evolution is a testament to adapting to energy transitions and global supply chain mastery. Beginning with kerosene and evolving into gasoline during the automotive boom, Shell did not cling to old energy sources. It expanded into natural gas, chemicals, and now invests heavily in renewables and sustainable solutions such as hydrogen and electric vehicle infrastructure. Their strategic alliance in 1907 exemplifies the power of partnerships to overcome fierce competition and achieve global reach. Shell’s success hinges on vast, complex logistics and supply chains enabling efficient worldwide resource movement, which supports their position at the forefront of the global energy transition.

Enduring Lessons from Giants of Diversification

These corporate behemoths offer invaluable leadership insights into sustained growth and resilience over a century of change:

• Strategic Merger (Unilever): The formation of Unilever highlights the power of combining complementary strengths. Leaders should seek partnerships where distinct assets and expertise form a synergy greater than the sum of parts.

  
  

• Brand Portfolio Management (Unilever): Managing thousands of brands requires strategic discipline and operational dexterity. Unilever’s success shows how to maintain individual brand identities while leveraging global scale and shared resources.

  
  

• Strategic Alliance (Shell): Shell’s formation illustrates the wisdom in alliances to compete with dominant players. Collaboration can be a path to market dominance and innovation.

  
  

• Adapting to Energy Transitions (Shell): Shell’s pivot to renewables emphasizes the necessity of re-evaluating core businesses amid global shifts, investing in future-proof solutions while balancing current operations.

  
  

• Global Reach & Supply Chain Mastery: Both companies exemplify how early and sustained investment in international markets and supply chains diversifies risk and drives growth.

The Relentless Pursuit of Relevance

The astounding journeys of Unilever and Shell demonstrate that corporate identity is dynamic, shaped by visionary leadership and responsiveness to changing circumstances. Beginning with niche products—margarine, soap, kerosene, and seashells—they grew into diversified global empires through strategic foresight and adaptability.

Their stories reinforce a core theme of our From the Unexpected to the Unstoppable series: economic downturns and intense competition forge resilient, adaptable businesses. In challenging times, these companies sought new growth avenues, formed innovative partnerships, and invested for the long term. Their century-spanning narratives offer priceless lessons for leaders aiming to build organizations that thrive across generations, constantly redefining purpose and expanding impact.

Inspiring Insights for Your Leadership Journey

“Change before you have to.” ~ Jack Welch, Former CEO of General Electric

“You must be shapeless, formless, like water. When you pour water in a cup, it becomes the cup.” ~ Bruce Lee, Martial artist and philosopher

“Growth is never by mere chance; it is the result of forces working together.” ~ James Cash Penney, Founder of J. C. Penney

“The greatest progress comes from embracing change, not resisting it.” ~ Rosabeth Moss Kanter, Harvard Business School Professor and Author

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