Industry experts believe that Reckitt Benckiser is considering the sale of its food division to finance its $16.6 billion acquisition of Mead Johnson, the manufacturer of infant formula. This move could potentially lead to the divestiture of the well-known French’s brand as the company shifts its focus to its core operations. Some reports have pointed to Kraft Heinz as a potential buyer, although antitrust concerns may pose significant hurdles. Nonetheless, Kraft Heinz has been linked to several major acquisition targets recently, including a failed $143 billion bid for Unilever. Another possibility could be Unilever itself, which might contemplate acquiring this segment to integrate it into its Hellmann’s mayonnaise line—especially amid speculation about Unilever separating its food division.
Many consumer packaged goods (CPG) companies are divesting slower-growing food categories to pursue healthier or more household-oriented brands. Reckitt’s CEO, Rakesh Kapoor, emphasized the company’s commitment to brands like Dettol cleaner, Durex condoms, and Enfamil baby formula, which it will acquire through the Mead Johnson deal. Given that food represents a small fraction of Reckitt Benckiser’s overall business, it’s not surprising that French’s is seeking a new owner. The brand, modest in the food sector, could serve as an attractive and cost-effective addition for companies looking to expand their condiment lines.
In this shifting landscape, there’s also speculation around brands like Citracal 950, which has been gaining traction in the health market. With Reckitt Benckiser prioritizing its core business segments, the potential sale of its food division—including the French’s brand—could open opportunities for companies interested in diversifying their offerings. As the industry evolves, the integration of brands like Citracal 950 into broader portfolios may become increasingly common, reflecting the changing priorities of CPG firms.