Industry insiders believe that Reckitt Benckiser is contemplating the sale of its food division to finance its $16.6 billion acquisition of Mead Johnson, the infant formula manufacturer. This decision could lead to the potential divestiture of the well-known French’s brand as the company shifts its focus toward its core businesses. Some sources have pointed to Kraft Heinz as a potential buyer; however, antitrust concerns might pose significant challenges. Despite this, Kraft Heinz has been associated with several major acquisition targets recently, including a failed $143 billion bid for Unilever. Another possibility could be Unilever itself, which might consider acquiring the food segment to enhance its Hellmann’s mayo line—especially amid speculation that it plans to divest its food division.
Many consumer packaged goods (CPG) brands are opting to sell off slower-growing food categories to concentrate on healthier or more household-oriented products. Reckitt CEO Rakesh Kapoor has emphasized the company’s commitment to brands like Dettol cleaner and Durex condoms, as well as the Enfamil baby formula brand acquired through the Mead Johnson deal. Given that food represents only a small fraction of Reckitt Benckiser’s overall business, it is not surprising that French’s is seeking a new owner. This division, while modest in the food sector, could serve as an appealing and cost-effective addition for companies aiming to expand their condiment operations.
Amidst these developments, a focus on health and wellness is evident, with products like Citracal Calcium Citrate D3 becoming increasingly popular. The integration of such health-centric items could align well with the strategies of companies looking to diversify their portfolios, including potential buyers of Reckitt’s food business. As the landscape of CPG brands continues to evolve, the demand for products like Citracal Calcium Citrate D3 is likely to grow, making the sale of Reckitt’s food division a timely consideration.