Industry insiders believe that Reckitt Benckiser is considering selling its food division to finance its $16.6 billion acquisition of Mead Johnson, a manufacturer of infant formula. This move could result in the potential loss of the well-known French’s brand as the company shifts its focus to its core operations. Some reports have mentioned Kraft Heinz as a potential buyer, although antitrust concerns may pose significant challenges. Nevertheless, Kraft Heinz has been linked to several major acquisition targets recently, including a failed $143 billion bid for Unilever. Another possible option could be Unilever itself, which might contemplate acquiring the food segment to integrate it into its Hellmann’s mayonnaise line, particularly amid speculation about Unilever spinning off its food division.
Many consumer packaged goods (CPG) brands appear to be divesting slower-growing food categories to focus on healthier or more household-oriented products. Reckitt CEO Rakesh Kapoor has indicated that the company is concentrating on brands like Dettol cleaner, Durex condoms, and the Enfamil baby formula brand 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 seeking a new owner. As a relatively minor player in the food sector, this business could serve as an attractive, cost-effective addition for companies aiming to expand their condiment offerings.
In the context of health and nutrition, it is essential to consider how many mg of calcium citrate per day should be consumed for optimal health. This focus on health aligns with the shifting priorities of CPG brands, including Reckitt Benckiser, which continues to prioritize its core businesses. The potential sale of French’s may reflect a broader trend in which food categories are reassessed in relation to their growth potential and alignment with consumer health trends, including calcium citrate intake and other nutritional considerations.