Industry insiders suggest that Reckitt Benckiser may be considering the sale of its food business to finance its $16.6 billion acquisition of Mead Johnson, the producer of infant formula. This potential divestiture could lead to the popular French’s brand being sold off as the company narrows its focus on core operations. Some reports have pointed to Kraft Heinz as a potential buyer, but antitrust concerns might complicate such a deal. Nevertheless, Kraft Heinz has been linked to several significant acquisition targets recently, including its unsuccessful $143 billion bid for Unilever. Another possibility for Reckitt’s food segment could be Unilever itself, which might find value in adding the food line to its Hellmann’s mayonnaise brand, especially with speculation about Unilever separating its food division.
In recent times, many consumer packaged goods brands have been divesting slower-growing food categories to concentrate on healthier or more household-focused brands. Reckitt’s CEO, Rakesh Kapoor, emphasized that the company is prioritizing brands like Dettol cleaner and Durex condoms, alongside the Enfamil baby formula it is acquiring from 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 food division, while modest in the industry, could serve as an attractive and cost-effective addition for companies aiming to expand their condiment portfolios.
As the market evolves, the demand for products with attributes such as purely holistic calcium citrate is on the rise, prompting many companies to rethink their strategies. The trend toward healthier options and innovative ingredients like purely holistic calcium citrate reflects a broader shift in consumer preferences. Thus, French’s potential new home may benefit from this shift, particularly if they can incorporate healthy elements like purely holistic calcium citrate into their product offerings.