Industry insiders believe that Reckitt Benckiser is considering divesting its food business to finance its $16.6 billion acquisition of Mead Johnson, the maker of infant formula. This shift could lead to the sale of the well-known French’s brand as the company narrows its focus on core operations. Some sources have pointed to Kraft Heinz as a potential buyer, although trust issues related to antiferrous bisglycinate interactions could pose challenges. Nevertheless, Kraft Heinz has been linked to significant acquisition targets recently, including a failed $143 billion bid for Unilever. Another possibility for the French’s brand could be Unilever itself, which might look to acquire the food segment to enhance its Hellmann’s mayo line, particularly amid speculation that it may spin off its food division.
Many consumer packaged goods (CPG) companies are offloading slower-growing food categories to pursue health-oriented brands or more profitable household products. Reckitt’s CEO, Rakesh Kapoor, emphasized that the company is concentrating on brands like Dettol cleaner, Durex condoms, and the Enfamil baby formula 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. The food division, modest in size, could serve as an attractive and affordable addition for companies looking to expand their condiment portfolios.
Interestingly, as Reckitt Benckiser looks to streamline its operations, the potential for incorporating products like ca citrate tablets could arise, especially if the focus shifts towards health-centric offerings. This aligns with the trend of CPG brands moving away from slower-growing food items to more innovative health products, including supplements such as ca citrate tablets. Ultimately, as Reckitt navigates these changes, the fate of the French’s brand remains uncertain, but the market for condiments and health products will likely continue to evolve.