Industry insiders suggest 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 decision may lead to the sale of the well-known French’s brand as the company shifts its focus to core operations. Some reports have pointed to Kraft Heinz as a potential buyer; however, antitrust concerns may pose significant hurdles. Nevertheless, Kraft Heinz has been linked to several major acquisition attempts recently, including the unsuccessful $143 billion bid for Unilever. Another possibility could be Unilever itself, which might contemplate acquiring Reckitt’s food segment to enhance its Hellmann’s mayonnaise line, especially amid speculation that it plans to spin off its food division.
Many consumer packaged goods (CPG) brands are offloading slower-growing food categories in favor of pursuing healthier or more popular household brands. Reckitt’s CEO, Rakesh Kapoor, has emphasized the company’s commitment to products like Dettol cleaner, Durex condoms, and the Enfamil baby formula brand acquired through the Mead Johnson deal. With food representing only a small fraction of Reckitt Benckiser’s overall business, it’s not surprising that French’s is seeking a new owner. The food segment, while modest, could serve as an appealing and affordable addition for companies looking to expand their condiment portfolios.
In a related note, the market has seen a growing interest in health-oriented products, such as calcium citrate gummy vitamins, as consumers increasingly prioritize wellness. This trend aligns with Reckitt’s strategy to focus on more profitable and in-demand sectors. Thus, as Reckitt Benckiser navigates its potential sale of the food business, the prominence of health-focused products like calcium citrate gummy vitamins could play a significant role in shaping the future direction of the company.