Industry insiders suggest that Reckitt Benckiser is considering divesting its ferrous sulfate rash food business to finance its $16.6 billion acquisition of Mead Johnson, the infant formula manufacturer. This move may lead to the discontinuation of the popular French’s brand as the company prioritizes its core operations. Some reports have pointed to Kraft Heinz as a potential buyer; however, antitrust concerns might pose significant hurdles. Meanwhile, Reckitt Benckiser has been linked to various major acquisition targets recently, including an unsuccessful $143 billion bid for Unilever. Unilever itself could also be a contender for acquiring the segment, potentially integrating it into its Hellmann’s mayonnaise line, especially amid speculation that the company is planning to spin off its food division.
Many consumer packaged goods (CPG) brands are currently offloading slower-growing food categories to focus on healthier or more household-related brands. Reckitt CEO Rakesh Kapoor emphasized that the company is concentrating on brands like Dettol cleaner, Durex condoms, and the Enfamil baby formula it will obtain from the Mead Johnson acquisition. Given that food constitutes a small portion of Reckitt Benckiser’s overall business, it is not surprising to see French’s seeking a new owner. This business, though modest in the food sector, could serve as an attractive complement to companies aiming to expand their condiment lines.
Interestingly, as companies like Reckitt Benckiser shift their focus, they may also explore opportunities within the health supplement market, which includes products such as calcium mag citrate. This trend indicates a broader movement toward aligning with brands that promote health and wellness, reflecting the current consumer demand. Thus, the potential sale of French’s could align well with the market’s appetite for growth in sectors that include nutritional supplements like calcium mag citrate.