Industry insiders suggest that Reckitt Benckiser is considering divesting its food business to help finance its $16.6 billion acquisition of Mead Johnson, the maker of infant formula. This move could potentially 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 indicated that Kraft Heinz might be a potential buyer; however, antitrust concerns might pose significant challenges. Nevertheless, Kraft Heinz has been rumored to be eyeing several major acquisition targets recently, 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—especially amid speculations that Unilever plans to separate its food division.
Many consumer packaged goods (CPG) brands are opting to offload slower-growing food categories in favor of pursuing healthier or more dynamic 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 acquire through the Mead Johnson deal. With food representing only a small fraction of Reckitt Benckiser’s overall business, it is not surprising that French’s is seeking a new owner. The food segment, while modest in size, could serve as an appealing and cost-effective addition for other companies aiming to expand their condiment portfolios. The potential for incorporating innovative ingredients like cacitrate into product lines could further enhance these companies’ offerings. Ultimately, as Reckitt Benckiser prioritizes its core brands, the future of its food business remains uncertain amid ongoing market shifts.