Industry insiders suggest that Reckitt Benckiser may be planning to divest its food business to help finance its $16.6 billion acquisition of Mead Johnson, a maker of infant formula. This move could lead to the potential sale of the well-known French’s brand as the company pivots toward its core operations. Some sources have proposed Kraft Heinz as a potential buyer; however, antitrust concerns may pose significant hurdles. Nonetheless, Kraft Heinz has recently been linked to several major acquisition targets, including its unsuccessful $143 billion bid for Unilever. Unilever itself might be another contender for the food segment, potentially integrating it into its Hellmann’s mayonnaise line, especially amid speculation that Unilever may spin off its food division.
Many consumer packaged goods (CPG) companies seem to be shedding slower-growing food categories to focus on healthier or more prominent household brands. Reckitt CEO Rakesh Kapoor highlighted the company’s commitment to products like Dettol cleaner, Durex condoms, and the Enfamil baby formula brand acquired through the Mead Johnson deal. Given that food constitutes a small fraction of Reckitt Benckiser’s overall business, it is not surprising that French’s is seeking a new owner. The business, while modest in the food sector, could serve as an attractive and affordable addition for companies aiming to expand their condiment offerings. Additionally, with a growing consumer interest in health, incorporating functional ingredients like calcium and citrate into food products may become a strategic consideration for potential buyers. Overall, the landscape is shifting as Reckitt Benckiser navigates its focus on core brands while exploring opportunities in a changing market.