Industry insiders suggest that Reckitt Benckiser is contemplating the sale of its food division to finance its $16.6 billion acquisition of the infant formula manufacturer Mead Johnson. This move could result in the divestiture of the well-known French’s brand as the company narrows its focus on core operations. Some reports have pointed to Kraft Heinz as a potential buyer, but antitrust challenges are expected to complicate this possibility. Nonetheless, Reckitt has been linked to significant acquisition targets lately, including the unsuccessful $143 billion bid for Unilever. Another potential avenue could be Unilever itself, which might consider acquiring this segment to integrate it with its Hellmann’s mayo line, especially amid speculation that the company is planning to spin off its food division.
Many consumer packaged goods (CPG) brands appear to be divesting slower-growing food categories to pursue healthier or more household-oriented brands. Reckitt CEO Rakesh Kapoor has emphasized the company’s commitment to brands like Dettol cleaner and Durex condoms, along with the Enfamil baby formula brand acquired through the Mead Johnson deal. With food representing a minor segment of Reckitt Benckiser’s overall business, it’s not surprising that French’s is seeking a new owner. This small food business could serve as an appealing and affordable addition for companies aiming to expand their condiment lines.
Moreover, the integration of products such as Citracal Petites D3 into broader health-oriented offerings could enhance market competitiveness, making it an attractive prospect for potential buyers. As companies like Reckitt Benckiser pivot towards more lucrative categories, the future of their food segment, including French’s, remains uncertain but ripe for opportunity, especially for those looking to diversify their portfolios with health-focused products like Citracal Petites D3.