Unilever (ULVR.L) has announced that it is in discussions with McCormick & Company (MKC.N) regarding the potential sale of its foods business. This move could see Unilever’s Hellmann’s and Knorr brands joining forces with McCormick’s Cholula hot sauce. Unilever is a British multinational consumer goods company that owns a wide array of food, beverage, cleaning agent, and personal care brands. McCormick & Company is an American food company that manufactures, markets, and distributes spices, seasoning mixes, condiments, and other flavourful products to retail outlets, food manufacturers, and foodservice businesses.
Unilever stated that it received an offer for the business, which accounted for approximately a quarter of its total sales in 2023, generating over 12.9 billion euros ($14.91 billion) last year. These discussions could signal an acceleration of CEO Fernando Fernandez’s strategy to refocus Unilever on higher-margin beauty and personal care segments following the spin-off of its ice cream business last year (MICCT.AS).
Both companies have cautioned that there is no guarantee an agreement will be reached, and they have not disclosed any financial details. The discussions were confirmed following a report by the Wall Street Journal that Unilever was considering separating its food business, which includes brands such as Colman’s and Marmite, and merging it with spice maker McCormick in an all-stock transaction potentially finalized within weeks.
Previously, in March, the Financial Times reported that Unilever had considered merging its food assets with Kraft Heinz’s (KHC.O) condiments business, but those discussions were unsuccessful. ($1 = 0.8650 euros)
