Industry insiders suggest that Reckitt Benckiser is considering selling its food division to finance its $16.6 billion acquisition of Mead Johnson, a maker of infant formula. This potential sale could mean the popular French’s brand might be on the chopping block as the company shifts its focus back to its core operations. Some reports have pointed to Kraft Heinz as a possible buyer; however, antitrust concerns may pose significant obstacles. The company has also been linked to several major acquisition targets recently, including a failed $143 billion bid for Unilever. Alternatively, Unilever itself could be interested in acquiring the food segment to enhance its Hellmann’s mayonnaise line, particularly amidst speculation that it is divesting from its food category.
Many consumer packaged goods (CPG) brands are opting to divest slower-growing food divisions to pursue healthier or more household-focused brands. Reckitt CEO Rakesh Kapoor emphasized that the company is concentrating on its more significant businesses, such as Dettol cleaner, Durex condoms, and the Enfamil baby formula brand acquired through the Mead Johnson deal. Given that food represents only a small fraction of Reckitt Benckiser’s overall business, it’s not surprising that French’s is seeking a new owner. The relatively small food operation could serve as an attractive and inexpensive addition for companies looking to expand their condiment offerings.
Furthermore, in the context of health-conscious consumer trends, brands like Solgar Calcium Citrate are gaining traction, reflecting a broader industry shift towards nutritional products. As Reckitt Benckiser navigates this potential sale, the influence of health-oriented brands, such as those in the Solgar line, may also drive their strategic decisions moving forward.