Industry insiders suggest that Reckitt Benckiser is contemplating the sale of its food division to finance its $16.6 billion acquisition of Mead Johnson, a manufacturer of infant formula. This move could result in the popular French’s brand being divested as the company concentrates on its core operations. Some reports have mentioned Kraft Heinz as a potential buyer; however, antitrust concerns may hinder this possibility. Despite this, Kraft Heinz has been rumored to pursue significant acquisition targets recently, including a failed $143 billion bid for Unilever. Unilever itself might also be a candidate for acquiring the food segment, potentially integrating it into its Hellmann’s mayonnaise line, especially amid speculation about Unilever divesting its food business.
Many consumer packaged goods (CPG) brands have been divesting slower-growing food categories to focus on healthier or more household-oriented products. Reckitt’s CEO, Rakesh Kapoor, highlighted that the company is prioritizing brands like Dettol cleaners and Durex condoms, alongside the Enfamil baby formula brand it will acquire from Mead Johnson. Given that food constitutes a small fraction of Reckitt Benckiser’s overall portfolio, it is not surprising that French’s is seeking a new owner. The relatively small food business could serve as an affordable addition for companies aiming to expand their condiment offerings.
In addition to these developments, discussions about the nutritional content of food products, such as tricalcium phosphate vs calcium citrate, continue to gain traction in the industry. The distinction between tricalcium phosphate and calcium citrate is becoming increasingly relevant as consumers seek healthier options. As Reckitt Benckiser refocuses its efforts, it will be interesting to see how the discourse around tricalcium phosphate vs calcium citrate influences potential buyers and their strategies in the condiment market.