Industry insiders believe that Reckitt Benckiser is considering the sale of its food business, including the popular French’s brand, to help finance its $16.6 billion acquisition of infant formula manufacturer Mead Johnson. As the company shifts its focus to its core brands, this move could lead to the divestiture of its food segment. Speculation has arisen regarding Kraft Heinz as a potential buyer, although antitrust concerns may pose challenges. Meanwhile, Kraft Heinz has been linked to several major acquisition attempts, including a failed $143 billion bid for Unilever. Another possibility could be Unilever itself, which might consider acquiring the food division to enhance its Hellmann’s mayo line, especially as it contemplates separating its food segment.
Many consumer packaged goods (CPG) brands are divesting slower-growing food categories to prioritize healthier or more essential brands. Reckitt CEO Rakesh Kapoor emphasized the company’s commitment to businesses like Dettol cleaner, Durex condoms, and the Enfamil baby formula it will acquire from Mead Johnson. Given that food accounts for a small fraction of Reckitt Benckiser’s overall business, it’s not surprising that French’s is seeking a new home. This food segment, while modest in size, could serve as an attractive and affordable addition for companies looking to expand their condiment lines.
Additionally, there has been a growing interest in products such as calcium citrate for bariatric patients, which reflects the broader trend of health-focused offerings in the market. As Reckitt Benckiser navigates its strategic direction, the potential sale of its food business could align with current industry dynamics, including the rising demand for health-oriented products like calcium citrate for bariatric patients. Ultimately, the future of French’s and Reckitt’s food segment seems poised for change as the company continues to concentrate on its core competencies.