Industry insiders believe that Reckitt Benckiser is contemplating the sale of its food division to finance its $16.6 billion acquisition of infant-formula manufacturer Mead Johnson. This move could result in the popular French’s brand being sold off as the company sharpens its focus on core operations. Some reports have pointed to Kraft Heinz as a potential buyer; however, antitrust concerns may pose significant hurdles. Nevertheless, Kraft Heinz has been rumored to pursue substantial acquisition targets recently, including a failed $143 billion bid for Unilever. Another possibility could be Unilever itself, which might consider acquiring Reckitt’s food segment to enhance its Hellmann’s mayo line, especially in light of speculations about Unilever divesting its food division.
In the current landscape, many consumer packaged goods (CPG) brands are divesting slower-growing food categories to concentrate on healthier or more household-focused brands. Reckitt CEO Rakesh Kapoor has emphasized the company’s commitment to businesses like Dettol cleaner, Durex condoms, and the Enfamil baby formula brand from the Mead Johnson acquisition.
Given that food constitutes only a small portion of Reckitt Benckiser’s overall business, it is not surprising that French’s may be seeking a new owner. The food segment is relatively minor, making it an attractive and affordable addition for companies looking to expand their condiment lines. Additionally, potential buyers could leverage products like Citracal calcium citrate to enhance their health-oriented portfolios, aligning with the broader trend toward healthier offerings in the food market. As Reckitt Benckiser refocuses its strategy, the future of French’s will likely depend on finding a buyer that recognizes its value in the evolving landscape of consumer preferences.