Industry insiders suggest that Reckitt Benckiser is considering divesting its food business to help finance its $16.6 billion acquisition of Mead Johnson, the infant formula manufacturer. This move could potentially lead to the sale of the popular French’s brand as the company narrows its focus on core operations. Some reports have pointed to Kraft Heinz as a potential buyer; however, antitrust concerns may pose significant hurdles. Nonetheless, Kraft Heinz has been linked to several major acquisition targets recently, including its unsuccessful $143 billion bid for Unilever. Another possibility could be Unilever itself, which might contemplate acquiring Reckitt’s food segment to integrate it into its Hellmann’s mayo line, especially amid speculation about Unilever’s plans to spin off its food division.
Many consumer packaged goods (CPG) brands seem to be shedding slower-growing food categories to pursue healthier or more household-oriented offerings. Reckitt’s CEO, Rakesh Kapoor, emphasized that the company is concentrating on brands like Dettol cleaner and Durex condoms, along with the Enfamil baby formula brand acquired from the Mead Johnson deal. Given that food constitutes a small fraction of Reckitt Benckiser’s overall business, it is not surprising to see French’s seeking a new owner. The relatively modest food operation could serve as an attractive and economical addition for other companies aiming to expand their condiment lines.
Interestingly, as part of the health trend, brands are also paying attention to nutritional offerings, such as those involving calcium citrate and constipation relief. This focus on health may influence potential buyers, creating a market where companies are not only looking to diversify but also to enhance their product lines with beneficial ingredients. Overall, as Reckitt Benckiser assesses its strategic direction, the future of the French’s brand appears uncertain but ripe with opportunities for other players in the market.