Unilever, the owner of iconic brands such as Dove soap and Ben & Jerry's ice cream, said sales grew 2.6% in Q3 from a year ago. Analysts had projected a sales gains of 3.9%. The Anglo-Dutch company cited competition from smaller and more nimble players, as well as natural disasters in global markets, for weakening sales.

Shares dived 6.1% to close at 57.65 on the stock market today, tumbling through their 50-day moving average. Unilever technically is back in buy range from a July breakout of 57.83, but the high-volume move through the 50-day should make investors wary.

While Swiss rival Nestle grew sales in Q3, it cautioned Thursday that restructuring charges of 400 million to 500 million Swiss francs ($410 million to $512 million) would eat into profit margins in 2017, reports said.

Unilever rejected a $143 billion bid by packaged foods giant Kraft Heinz (KHC) earlier this year, and an analyst told Reuters that lower ad and promotional spending since then may have hurt its sales.

Procter & Gamble On Tap

Meanwhile, U.S. consumer giant Procter & Gamble (PG) reports Friday and investors are bracing for tepid results.

The analyst consensus view is for EPS of $1.07, up 4% vs a year ago, on revenue of $16.64 billion, up less than 1%, according to Zacks Investment Research.

P&G narrowly won a proxy fight last week vs. Nelson Peltz, who is challenging the results. Peltz, who runs Trian Fund Management, wanted the Dow component to focus more on innovative brands and less on legacy, core products.

Nestle shares dipped 0.3% to 86.03 within a flat base with an 89.50 buy point Thursday. Procter & Gamble shed 0.5% to 91.59, undercutting a 92.10 buy point. Kraft Heinz lost 0.8%, hitting its lowest levels since early 2016.

The consumer goods sector has cooled this year as tastes swing away from the largest players and toward niche and alternative brands. Grocery stores are adopting more-upscale private-label goods, putting a squeeze on branded food and consumer products.