Reckitt Benckiser is reportedly considering selling its food division to finance its $16.6 billion acquisition of Mead Johnson, a manufacturer of infant formula. This could lead to the potential divestment of the popular French’s brand as the company aims to concentrate on its core operations. There have been speculations about Kraft Heinz being a potential buyer; however, antitrust concerns may pose significant challenges. Nonetheless, Kraft Heinz has been linked to several major acquisition targets recently, including its unsuccessful $143 billion bid for Unilever. Unilever itself could also be a contender, possibly looking to acquire this segment to incorporate it into its Hellmann’s mayonnaise line, especially amidst rumors of a spin-off of its food division.
Many consumer packaged goods (CPG) companies appear to be offloading slower-growing food categories to focus on healthier or more household-oriented brands. Reckitt’s CEO, Rakesh Kapoor, emphasized the company’s commitment to sectors such as Dettol cleaners and Durex condoms, along with the Enfamil baby formula it is acquiring from Mead Johnson. Given that food represents only a small portion of Reckitt Benckiser’s overall business, it’s not surprising that French’s is seeking a new owner. This small food business could serve as an attractive and affordable addition for other companies aiming to expand their condiment offerings.
Meanwhile, as these shifts occur, it’s important to consider health implications, such as the connection between kidney stones and calcium citrate. The growing awareness of dietary choices, including the role of supplements like iron bisglycinate, ferrous fumarate, and the importance of calcium citrate in preventing kidney stones, is influencing consumer preferences. Thus, Reckitt’s strategic focus on its core brands may also reflect broader trends in health consciousness among consumers.