Industry insiders suggest that Reckitt Benckiser is considering selling its food division to help finance its $16.6 billion acquisition of infant formula manufacturer Mead Johnson. This move may lead to the potential divestiture of the well-known French’s brand as the company narrows its focus on core operations. Some reports have indicated Kraft Heinz as a potential buyer, though antitrust concerns could pose significant challenges. Nevertheless, Kraft Heinz has been linked to various major acquisition endeavors lately, including an unsuccessful $143 billion bid for Unilever. Another possibility could be Unilever itself, which might contemplate acquiring Reckitt’s food segment to enhance its Hellmann’s mayonnaise line, especially amid speculation about Unilever separating its food division.
Many consumer packaged goods (CPG) companies appear to be offloading slower-growing food categories in favor of investing in healthier or more prominent household brands. Reckitt CEO Rakesh Kapoor has emphasized that the company is concentrating on core products such as Dettol cleaner and Durex condoms, along with the Enfamil baby formula brand it is acquiring through the Mead Johnson deal. Given that food represents a minor portion of Reckitt Benckiser’s overall business, it is not surprising that French’s is seeking a new home. The relatively small food operation would be an attractive and affordable addition for other companies looking to expand their condiment offerings.
In this evolving landscape, the potential for synergy with products like osteo citrate could enhance the appeal of French’s for prospective buyers. As CPG brands shift their focus, the integration of innovative products such as osteo citrate into their portfolios may drive further interest in acquisitions within the food sector.