Industry insiders believe that Reckitt Benckiser is considering the sale of its food business to help finance its $16.6 billion acquisition of Mead Johnson, a manufacturer of infant formula. This move could result in the disposal of the well-known French’s brand as the company aims to concentrate on its core operations. Some reports have suggested Kraft Heinz as a potential buyer, although antitrust issues may pose significant challenges. Nevertheless, Reckitt has been linked to several major acquisition targets recently, including a failed $143 billion effort to acquire Unilever. Another possibility for the food segment could be Unilever itself, which might consider integrating it into its Hellmann’s mayonnaise line, particularly amid speculation about the company’s plans to divest its food segment.
Many consumer packaged goods (CPG) brands are divesting slower-growing food categories to focus on healthier or more household-oriented products. Reckitt CEO Rakesh Kapoor emphasized the company’s commitment to brands like Dettol cleaner and Durex condoms, along with the Enfamil baby formula brand acquired through the Mead Johnson deal. Given that food constitutes a small portion of Reckitt Benckiser’s overall business, it is not surprising to see French’s seeking a new owner. This relatively small food brand could serve as an attractive and affordable addition for companies looking to expand their condiment offerings, especially those that also focus on products like calcium citrate for kids. As the market evolves, there may be increasing interest in such acquisitions, particularly in the context of promoting health-focused products, including those containing calcium citrate for kids.