Global consumer goods business, Unilever, has confirmed it is in discussions with McCormick & Co on the sale of its Food business. Both companies have released statements saying while negotiations are ongoing there is no certainty of a deal.
The companies ended speculation after talks between Unilever and Kraft Heinz ended, which would have combined Unilever’s Food business with Kraft’s condiments business.
Unilever spun off its ice cream business last year, after announcing plans to do so in 2024 as part of a 10-point plan to turn around the company’s underperformance. The business was renamed The Magnum Ice Cream Company (TMICC) and began operating separately from FY26.
Bloomberg has estimated the Food business to be worth $47.3 billion (US$33 billion). Brands include Hellmann’s, Horlicks, and Knorr.
“The board believes Foods is a highly attractive business, with a strong financial profile led by market-leading brands in growing categories and is confident in the future of the Foods business as part of Unilever,” the company’s statement said.
For McCormick, currently valued at $20 billion (US$14 billion), acquiring the business would increase its competitiveness against other global food and condiment companies including Kraft Heinz and Nestlé.
It has roughly $7 billion in annual sales across 150 countries of its products range including herbs, spices, seasonings, condiments and flavours to the entire food and beverage industry including retailers, food manufacturers and foodservice businesses.
Its brands include McCormick, French's, Frank's RedHot, OLD BAY, Cholula, Aeroplane, and Gourmet Garden.
“McCormick regularly evaluates its portfolio and strategic options in pursuit of maximising shareholder value and consistent with its fiduciary duties and in consultation with its financial and legal advisors,” it said.
“While these discussions are ongoing, there can be no certainty or assurances as to whether an agreement for a transaction will be reached or as to the terms or timing of any such transaction.”
