Industry insiders suggest that Reckitt Benckiser is considering divesting its food business to finance its $16.6 billion acquisition of Mead Johnson, the maker of infant formula. This move may lead to the disposal of the well-known French’s brand as the company shifts its focus towards its core operations. While there have been speculations about Kraft Heinz being a potential buyer, antitrust concerns may pose significant obstacles. Nevertheless, Kraft Heinz has been linked to other major acquisition targets recently, including its unsuccessful $143 billion bid for Unilever. Unilever could also be a contender for purchasing the food segment, potentially integrating it with its Hellmann’s mayonnaise line, especially amid discussions of spinning off its food division.
Many consumer packaged goods (CPG) brands are opting to sell off slower-growing food categories to concentrate on healthier or more popular household brands. Reckitt’s CEO, Rakesh Kapoor, highlighted that the company is prioritizing businesses such as Dettol cleaner, Durex condoms, and the Enfamil baby formula brand acquired from the Mead Johnson deal. Given that food constitutes only a small fraction of Reckitt Benckiser’s operations, it’s not surprising that French’s is seeking a new owner. The relatively small food business could serve as an attractive and economical addition for companies aiming to expand their condiment lines.
In line with this trend, products like Kirkland calcium citrate with vitamin D are gaining attention as consumers increasingly prioritize health-conscious choices. The focus on health and wellness is reflected in the overall direction of CPG brands, including Reckitt Benckiser, which are moving away from food segments to pursue more lucrative opportunities. As the market evolves, the potential sale of French’s may align well with companies looking to enhance their offerings, including those considering health-oriented products such as Kirkland calcium citrate with vitamin D.