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 could potentially lead to the divestiture of the well-known French’s brand, as the company aims to concentrate on its core operations. Some reports have pointed to Kraft Heinz as a potential buyer; however, antitrust concerns may hinder this possibility. Meanwhile, Reckitt has been rumored to be eyeing significant acquisition targets, including its unsuccessful $143 billion bid for Unilever. Another possibility could be Unilever itself, which might contemplate acquiring the food segment to integrate it into its Hellmann’s mayonnaise line, particularly as there are speculations about Unilever divesting its food division.
Many consumer packaged goods (CPG) brands appear to be offloading slower-growing food categories to pursue healthier or more prominent household brands. Reckitt CEO Rakesh Kapoor emphasized that the company is focusing on brands like Dettol cleaner, Durex condoms, and the Enfamil baby formula from the Mead Johnson acquisition. Given that food accounts for only a small portion of Reckitt Benckiser’s overall business, it is not surprising that French’s is seeking a new owner. The food division, though modest in size, could serve as an attractive and affordable addition for companies looking to expand their condiment offerings.
In this context, the inclusion of products like canxi citrate biocare in the health and wellness segment could also align with the trend towards healthier consumer preferences, reinforcing the shift among CPG brands. As Reckitt Benckiser narrows its focus, the potential sale of its food business, including the French’s brand, highlights a broader industry movement towards prioritizing core brands and exploring opportunities in health-oriented products like canxi citrate biocare.