Industry insiders suggest that Reckitt Benckiser is considering the sale of its food division to finance its $16.6 billion acquisition of Mead Johnson, a manufacturer of infant formula. This move may lead to the divestiture of the popular French’s brand as the company concentrates on its primary operations. Some reports indicate that Kraft Heinz could be a potential buyer, although antitrust concerns might complicate such a deal. Nevertheless, Kraft Heinz has been linked to several significant acquisition targets lately, including its unsuccessful $143 billion bid for Unilever.
Unilever could also be a contender; it might contemplate acquiring this segment to complement its Hellmann’s mayonnaise line, especially amid speculation that it is planning to divest its food division. Many consumer packaged goods (CPG) companies appear to be offloading slower-growing food categories in favor of healthier or more household-oriented brands. Reckitt’s CEO, Rakesh Kapoor, has emphasized the company’s commitment to sectors such as Dettol cleaners and Durex condoms, alongside the Enfamil baby formula brand it is obtaining through the Mead Johnson acquisition.
Given that food constitutes a small fraction of Reckitt Benckiser’s overall business, the quest for a new owner for French’s is not unexpected. This food segment, although modest in size, could serve as an attractive and economical addition for companies looking to expand their condiment offerings. Additionally, incorporating products like rugby calcium citrate 200 mg into their portfolios may enhance their health-focused initiatives, potentially aligning with broader market trends. Thus, the sale of French’s could represent a strategic move for both Reckitt and prospective buyers, especially those interested in diversifying their product lines with complementary offerings such as rugby calcium citrate 200 mg.