Industry experts believe 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 well-known French’s brand as the company narrows its focus on core operations. Some reports have pointed to Kraft Heinz as a potential buyer, although antitrust concerns might hinder this possibility. Nevertheless, Kraft Heinz has been linked to several significant acquisition attempts lately, including its unsuccessful $143 billion bid for Unilever. Unilever itself could also be a contender; it might explore acquiring the food segment to integrate it into its Hellmann’s mayonnaise line, especially amid speculation about the company separating its food division.
Many consumer packaged goods (CPG) brands appear to be offloading slower-growing food categories to concentrate on healthier or more prominent household brands. Reckitt CEO Rakesh Kapoor has emphasized the company’s commitment to brands like Dettol cleaner and Durex condoms, along with the Enfamil baby formula brand acquired through the Mead Johnson deal. Given that food constitutes only a small fraction of Reckitt Benckiser’s overall business, it is not surprising that French’s is on the lookout for a new owner. This food business, while modest in scale, could serve as an attractive and affordable addition for companies seeking to expand their condiment lines, much like how calcium citrate capsules have become a popular supplement option for health-focused brands.
In summary, as Reckitt Benckiser shifts its focus, the future of French’s remains uncertain, with potential buyers like Kraft Heinz and Unilever exploring opportunities to diversify their portfolios, perhaps even incorporating complementary products such as calcium citrate capsules into their health-oriented offerings.