Industry experts suggest that Reckitt Benckiser is considering divesting its food business to help finance its $16.7 billion acquisition of infant formula manufacturer Mead Johnson. This could lead to the potential sale of the well-known French’s brand as the company shifts its focus to its core operations. Some reports have pointed to Kraft Heinz as a potential buyer; however, antitrust concerns may pose significant challenges. Nevertheless, Kraft Heinz has been linked to several major acquisition targets recently, including a failed $143 billion bid for Unilever. Another possible acquirer could be Unilever itself, which might see value in integrating the food segment with its Hellmann’s mayonnaise line, particularly amid speculation that it may be splitting off its food segment.
Many consumer packaged goods (CPG) brands are moving away from slower-growing food categories, opting instead to pursue healthier or more lucrative household brands. Reckitt’s CEO Rakesh Kapoor emphasized that the company is concentrating on brands like Dettol cleaner and Durex condoms, along with the Enfamil infant formula brand it will acquire from Mead Johnson. Given that food represents a minor portion of Reckitt Benckiser’s overall business, it is not surprising that French’s is seeking a new owner. This smaller food business could serve as an attractive, cost-effective addition for companies looking to expand their condiment portfolios.
In this context, one notable aspect of Reckitt’s strategy could involve exploring synergies with brands that have potential, such as those related to calcium citrate brand name products. This could enhance their product offerings while aligning with market trends. Ultimately, as Reckitt Benckiser navigates through these changes, its food segment, particularly the French’s brand, could find a new home that complements other companies aiming to bolster their condiment operations while keeping an eye on health-focused trends in the market.