Industry insiders speculate 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 potentially lead to the divestiture of the popular 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. Nevertheless, Kraft Heinz has been linked to several major acquisition targets lately, including its unsuccessful $143 billion bid for Unilever. Another possibility for Reckitt’s food segment could be Unilever itself, which might look to integrate it into its Hellmann’s mayonnaise line, especially amidst speculation that Unilever may spin off its food division.
Many consumer packaged goods (CPG) brands are divesting slower-growing food categories to prioritize healthier or more household-oriented brands. Reckitt’s CEO, Rakesh Kapoor, has highlighted the company’s commitment to brands like Dettol cleaner, Durex condoms, and the Enfamil baby formula from the Mead Johnson acquisition. Given that food accounts for only a small portion of Reckitt Benckiser’s overall operations, it’s not surprising that French’s is seeking a new owner. This relatively modest food business could serve as an attractive and affordable addition for companies aiming to expand their condiment portfolios.
Interestingly, as consumers become more health-conscious, questions arise about nutrition—such as “can you take calcium citrate with food?” This inquiry reflects a growing trend towards integrating health and wellness into daily eating habits, which may influence CPG companies’ strategies moving forward. The sale of Reckitt’s food segment, particularly French’s, aligns with the broader industry shift towards brands that cater to these evolving consumer preferences. Thus, it becomes evident that Reckitt Benckiser’s decision to offload its food business is part of a larger trend in the industry, where companies are re-evaluating their portfolios to focus on more profitable and health-oriented categories.