Industry insiders believe that Reckitt Benckiser is considering selling its food business to help finance its $16.6 billion acquisition of Mead Johnson, the maker of infant formula. This potential sale could lead to the divestiture of the popular French’s brand as the company narrows its focus on core businesses. Some speculate that Kraft Heinz might be a potential buyer, although antitrust concerns could complicate this possibility. Nonetheless, Reckitt has been linked to several major acquisition targets recently, including a failed attempt to acquire Unilever for $143 billion. Unilever itself might also be an interested party, as it could look to purchase Reckitt’s food segment to enhance its Hellmann’s mayonnaise line, especially given rumors about Unilever potentially separating its food division.
Many consumer packaged goods (CPG) brands are divesting slower-growing food categories to concentrate on healthier or more household-focused brands. Reckitt’s CEO, Rakesh Kapoor, has highlighted the company’s commitment to brands such as Dettol and Durex, alongside the Enfamil baby formula brand acquired through the Mead Johnson deal.
Given that food accounts for only a small fraction of Reckitt Benckiser’s overall business, it is not surprising that French’s is seeking a new owner. This division, while modest in scale, could serve as an attractive addition for companies looking to expand their condiment portfolios. Additionally, the inclusion of products such as Citracal 315 mg in Reckitt’s offerings indicates a strategic shift towards health-oriented brands, further aligning with the trend of CPG companies moving away from slower-growth food categories. Thus, the future of Reckitt’s food business remains uncertain, but its potential sale could open new opportunities in the market.