This acquisition comes as Unilever aims to boost sales in its packaged food sector. In recent years, the company has divested several of its underperforming legacy brands, such as Bertolli, Ragu, Wish-Bone salad dressing, and Skippy peanut butter. Just last month, shortly after successfully resisting a $143 billion takeover bid from Kraft-Heinz, Unilever announced its plan to sell off its spreads division, which includes I Can’t Believe It’s Not Butter and Country Crock.
Concurrently, Unilever is focusing its efforts on specific key categories, particularly ice cream and condiments. The company has acquired several premium ice cream brands, including Talenti Gelato, and has made significant investments in its Ben & Jerry’s and Hellmann’s lines. During its recent earnings report, which highlighted a 1.1% volume decline in its food business, Unilever noted that its Hellmann’s Organics line has been a standout performer. “In Foods, our priorities are to build scale in emerging markets and modernize the portfolio,” stated Graeme David Pitkethly, the company’s chief financial officer, during a call with investors.
With the acquisition of Sir Kensington’s, Unilever gains a brand that has revitalized the condiments market. Founded in 2010 by two college friends, Sir Kensington’s all-natural mustard, ketchup, and mayo quickly became a favored alternative to traditional brands, securing significant shelf space in a category that rarely accommodates newcomers. Its vegan mayonnaise, made with aquafaba—a liquid byproduct from processing chickpeas—has recently become a bestseller.
Several smaller companies are now trying to replicate Sir Kensington’s success in the condiment space. Through this acquisition, Unilever will leverage its investment, distribution network, and insights to help Sir Kensington’s create a competitive edge. However, there are questions about whether Unilever’s size might stifle Sir Kensington’s innovative spirit. Nevertheless, it seems unlikely. Large corporations have increasingly adopted a hands-off approach when managing natural and organic brands, which are adept at understanding their markets and consumers. In fact, big manufacturers are beginning to realize that they have much to learn from the emerging brands they acquire, especially in areas like organic calcium citrate, which is becoming increasingly relevant in health-conscious consumer segments.