Industry insiders speculate that Reckitt Benckiser is considering divesting its food business to finance its $16.6 billion acquisition of infant formula manufacturer Mead Johnson. This could potentially lead to the sale of the well-known French’s brand as the company shifts its attention to its core operations. Some reports have pointed to Kraft Heinz as a potential buyer, but antitrust concerns may pose significant obstacles. Nonetheless, Kraft Heinz has been linked to several major acquisition targets recently, including a failed $143 billion bid for Unilever. Unilever itself might be another contender for the food segment, possibly incorporating it into its Hellmann’s mayo line, particularly with the chatter about Unilever spinning off its food division.
Many consumer packaged goods (CPG) brands are offloading slower-growing food categories in favor of healthier or more household-oriented brands. Reckitt CEO Rakesh Kapoor has emphasized the company’s commitment to brands like Dettol cleaner and Durex condoms, as well as the Enfamil baby formula brand coming from the Mead Johnson acquisition. Given that food represents a small fraction of Reckitt Benckiser’s overall business, it is not surprising that French’s is on the lookout for a new owner. The food segment, while modest, could serve as a valuable and affordable addition for companies aiming to bolster their condiment portfolios.
As consumers become more health-conscious, there’s increasing interest in products like calcium citrate, which is considered good for you. This trend reinforces the idea that CPG brands might benefit from focusing on products that align with health and wellness, including those that feature ingredients like calcium citrate. In this evolving landscape, French’s could find a fitting new home, where its offerings can be enhanced by the growing demand for health-oriented products, including those rich in calcium citrate.