Unilever has confirmed that it is in discussions regarding a potential deal to merge its food business with McCormick & Company, following reports of a possible merger.
The producer of brands like Marmite and Hellmann’s has received an inquiry regarding its food division and is now in talks with the U.S. group that owns Schwartz and French’s.
In a statement to investors, Unilever noted, “There can be no certainty that any transaction will be agreed upon.”
Despite ongoing discussions, the company emphasised that its food division remains “a highly attractive business with a strong financial profile, supported by market-leading brands” and expressed confidence in the future of its food operations as part of Unilever.
These negotiations are part of a broader strategic shift by Unilever, which is exploring ways to streamline its portfolio and focus on faster-growing sectors like beauty, personal care, and home products.
Unilever’s food division includes well-known brands such as Colman’s and Knorr, and there have been previous discussions about a potential demerger. The company has already begun reshaping its business; last year, it spun off its ice cream arm to create the Magnum Ice Cream Company and divested brands such as Graze and The Vegetarian Butcher.
At the same time, Unilever has been expanding its presence in personal care through acquisitions, such as Wild and Dr Squatch, signalling a clear pivot toward higher-growth, higher-margin categories.
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