Industry experts 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 potential sale could lead to the discontinuation of the popular French’s brand as the company shifts its focus toward its core operations. Some reports have indicated that Kraft Heinz might be a suitable buyer, although antitrust concerns could complicate the deal. Nevertheless, Kraft Heinz has been rumored to be eyeing significant acquisition opportunities recently, including its failed $143 billion bid for Unilever. Another possibility is that Unilever itself could contemplate acquiring the food segment to incorporate it into its Hellmann’s mayonnaise line, particularly as there are speculations about Unilever separating its food division.
Many consumer packaged goods (CPG) companies are currently offloading slower-growing food categories in favor of healthier or more established brands. Reckitt’s CEO, Rakesh Kapoor, has emphasized that the company is concentrating on businesses like Dettol cleaner, Durex condoms, and the Enfamil baby formula brand acquired from the Mead Johnson deal. Given that the food segment represents only a small fraction of Reckitt Benckiser’s overall business, it is not surprising that French’s may be seeking a new owner. The relatively modest size of this food business could make it an attractive and cost-effective addition for other companies looking to expand their condiment offerings.
In the context of food products, the focus on health aspects has led to a growing interest in ingredients that enhance calcium citrate bioavailability, which is becoming increasingly relevant in the industry. As Reckitt Benckiser pivots towards its core brands, the potential sale of French’s could align with broader trends in the market, particularly the demand for products that support improved calcium citrate bioavailability. Thus, as the company navigates its future, the fate of its food business, including the French’s brand, remains uncertain but indicative of larger industry shifts.