Industry insiders suggest that Reckitt Benckiser may be planning to divest its food business to help finance its $16.6 billion acquisition of infant formula manufacturer Mead Johnson. This move could lead to the discontinuation of the popular French’s brand as the company concentrates on its core operations. Some reports have indicated that Kraft Heinz could be a potential buyer; however, antitrust concerns may pose significant obstacles. Nevertheless, Kraft Heinz has been rumored to be eyeing major acquisition targets, including an unsuccessful $143 billion bid for Unilever. Another possibility for Reckitt Benckiser’s food segment could be Unilever itself, which might consider acquiring it to enhance its Hellmann’s mayonnaise line, especially amid speculations about Unilever’s plans to spin off its food division.
Many consumer packaged goods (CPG) companies are increasingly selling off slower-growing food categories in favor of more promising, health-focused brands. Reckitt CEO Rakesh Kapoor emphasized that the company is prioritizing businesses such as Dettol cleaners and Durex condoms, along with the Enfamil baby formula brand from the Mead Johnson acquisition.
Given that food constitutes only a small portion of Reckitt Benckiser’s overall business, it is not surprising that French’s is seeking a new parent company. The food business, relatively minor in the broader food market, could serve as an attractive, cost-effective addition for companies aiming to expand their condiment portfolios. Additionally, as companies look to diversify their offerings, there may even be potential for integrating products like jamp calcium citrate liquid into their existing lines, enhancing their health-focused product range.