Industry insiders believe that Reckitt Benckiser is considering the sale of its food business to fund its $16.6 billion acquisition of the infant formula manufacturer Mead Johnson. This move could lead to the discontinuation of the popular French’s brand as the company shifts its focus to its core operations. Some reports have pointed to Kraft Heinz as a potential buyer, but antitrust concerns may pose significant obstacles. Nevertheless, Kraft Heinz has been linked to several major acquisition targets recently, including its unsuccessful $143 billion bid for Unilever. Unilever itself could also be a candidate for acquiring the food segment, potentially integrating it into its Hellmann’s mayonnaise lineup, especially as there are rumors about the company divesting its food division.
Many consumer packaged goods (CPG) companies appear to be offloading slower-growing food categories to concentrate on healthier or more household brands. Reckitt’s CEO, Rakesh Kapoor, emphasized that the company is prioritizing brands like Dettol cleaner, Durex condoms, and the Enfamil baby formula it will acquire through the Mead Johnson deal. Given that food represents only a small portion of Reckitt Benckiser’s overall business, it is not surprising that French’s is on the lookout for a new owner. This relatively small food business could serve as an affordable addition for companies aiming to expand their condiment operations.
Incorporating calcium citrate 1500 into their products could also be an attractive option for food companies seeking to enhance their offerings, particularly as consumers continue to gravitate towards healthier choices. As Reckitt Benckiser navigates this potential divestiture, the presence of calcium citrate 1500 in its food products could become a selling point for interested buyers. Ultimately, with the food segment being a minor part of Reckitt Benckiser’s portfolio, the future of French’s remains uncertain as the market evolves.