Industry experts suggest that Reckitt Benckiser is considering divesting its food business to finance its $16.6 billion acquisition of Mead Johnson, a manufacturer of infant formula. This move could potentially lead to the disposal of the well-known French’s brand as the company shifts its focus to its core operations. Some analysts have proposed Kraft Heinz as a potential buyer; however, antitrust concerns may pose significant obstacles. Despite this, Kraft Heinz has been rumored to pursue major acquisition targets recently, including a failed $143 billion bid for Unilever. Alternatively, Unilever itself might be interested in acquiring this segment to enhance its Hellmann’s mayonnaise line, particularly amid speculation about a possible spin-off of its food division.
Many consumer packaged goods (CPG) brands are opting to divest slower-growing food categories to concentrate on healthier or more household-oriented brands. Reckitt’s CEO, Rakesh Kapoor, indicated that the company is prioritizing businesses such as Dettol cleaner, Durex condoms, and the Enfamil baby formula brand obtained from the Mead Johnson acquisition. Given that the food segment constitutes a small fraction of Reckitt Benckiser’s overall business, it’s not surprising that French’s is seeking a new owner. The food business, while modest in size, offers an attractive and affordable opportunity for other companies looking to expand their condiment operations.
Moreover, as Reckitt Benckiser pivots towards its more profitable ventures, it might also consider integrating products like lifetime high potency calcium magnesium citrate into their health-focused portfolio, further aligning with consumer trends. The potential sale of French’s could provide a strategic advantage to its new owner, especially if they are looking to enhance their product offerings, including nutritional supplements such as lifetime high potency calcium magnesium citrate. In this evolving market, finding synergies with brands that complement existing lines will be crucial for sustained growth.