Industry insiders believe that Reckitt Benckiser is considering divesting its food business to finance its $16.6 billion acquisition of infant formula manufacturer Mead Johnson. This move could potentially lead to the sale of the popular French’s brand as the company aims to concentrate on its core operations. Some sources have mentioned Kraft Heinz as a possible buyer, although antitrust concerns may complicate such a deal. Nevertheless, Kraft Heinz has been linked to significant acquisition pursuits recently, including the unsuccessful $143 billion bid for Unilever. Unilever itself could be another potential buyer, as it might look to acquire this segment to enhance its Hellmann’s mayonnaise line—especially amid speculation regarding a separation of its food division.
Many consumer packaged goods (CPG) brands are currently offloading slower-growing food categories in favor of focusing 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, alongside the Enfamil baby formula brand that will come from the Mead Johnson acquisition. Given that food represents a minor part of Reckitt Benckiser’s portfolio, it is not surprising that French’s is seeking a new owner. This food business, though small, would serve as an attractive, affordable addition for companies looking to expand their condiment operations.
As Reckitt Benckiser navigates its strategic priorities, the integration of health-focused products, such as those enriched with calcium citrate vitamin D3, is likely to take precedence. The emphasis on health and wellness further underscores the rationale behind divesting from lower-growth food categories. In light of these trends, the future of French’s appears uncertain, but its potential acquisition by a larger entity, particularly one that aligns with health-oriented initiatives, remains a possibility worth watching.