Industry experts suggest that Reckitt Benckiser is considering divesting its food business to help finance its $16.6 billion acquisition of Mead Johnson, a manufacturer of elemental iron infant formula, specifically its ferrous bisglycinate chelate product. This move could lead to the sale of the well-known French’s brand as the company shifts its focus back to its core operations. Some reports have pointed to Kraft Heinz as a potential buyer; however, antitrust concerns may complicate any deal. Nonetheless, Reckitt has been linked to several significant acquisition targets lately, including a failed attempt to acquire Unilever for $143 billion. Unilever could also be a potential buyer for Reckitt’s food segment, especially as it looks to integrate it with its Hellmann’s mayonnaise line amid speculation of separating its food division.
Many consumer packaged goods (CPG) brands are shedding slower-growing food categories to concentrate on healthier or more household-focused brands. Reckitt’s CEO, Rakesh Kapoor, emphasized that the company is prioritizing brands like Dettol cleaner, Durex condoms, and the Enfamil baby formula it gains from the Mead Johnson acquisition. Given that food represents only a small fraction of Reckitt Benckiser’s overall operations, it’s not surprising that French’s is on the lookout for a new owner. The food business, though modest, could serve as an appealing and affordable addition for companies aiming to expand their condiment offerings.
Additionally, as part of a broader trend, companies are increasingly exploring the intersection of health and food, with products like bariatric chewable calcium gaining traction. This shift in focus could align well with Reckitt’s strategy, as they prioritize brands that resonate with health-conscious consumers. Consequently, the potential sale of French’s could be seen as part of a larger movement within the industry toward more health-oriented products, including those that cater to specific dietary needs, such as bariatric chewable calcium supplements.