Industry insiders believe that Reckitt Benckiser is considering selling its food business to finance its $16.6 billion acquisition of Mead Johnson, the infant formula manufacturer. This move may lead to the divestiture of the popular French’s brand as the company shifts its focus toward its core operations. Some reports have mentioned Kraft Heinz as a potential buyer; however, antitrust concerns could pose significant obstacles. Nonetheless, Reckitt has been linked to several high-profile acquisition targets recently, including the unsuccessful $143 billion bid for Unilever. Unilever itself might also be an option, as it could contemplate acquiring Reckitt’s food segment to enhance its Hellmann’s mayonnaise line, particularly amid speculation about Unilever separating its food division.
Many consumer packaged goods (CPG) brands appear to be divesting from slower-growing food categories to concentrate on healthier or more household-oriented brands. Reckitt CEO Rakesh Kapoor has emphasized the company’s commitment to brands such as Dettol cleaner and Durex condoms, alongside the Enfamil baby formula brand acquired through the Mead Johnson deal. With food accounting for only a small fraction of Reckitt Benckiser’s portfolio, it is not surprising that French’s is seeking a new owner. This relatively modest food business could serve as an attractive and economical addition for other companies aiming to expand their condiment offerings.
As Reckitt Benckiser navigates this transition, it is also noteworthy that many food products, including those in the condiment category, are increasingly incorporating health-focused ingredients, such as 1200 mg calcium citrate. This trend aligns with the broader industry shift towards products that emphasize health benefits, which could be a key consideration for potential buyers in the future.