Unilever says it is reviewing a possible sale of its food business after receiving an offer from McCormick & Company.
The company confirmed on Friday that discussions are ongoing but not final. “There can be no certainty that any transaction will be agreed,” Unilever said.
Its food unit includes major brands such as Marmite, Knorr and Hellmann’s.
McCormick, known for Cholula and French’s, also confirmed the talks, saying it “does not intend to make any additional comments” unless necessary.
The move reflects CEO Fernando Fernandez’s plan to focus more on faster-growing areas like beauty and personal care.
“We think it is sensible that Unilever are looking at options for their food business,” said Richard Saldanha of Aviva. “It’s clear the company wants to focus on areas such as personal care and beauty where underlying category and volume growth are more attractive.”
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Any deal could be complex due to the size gap between both firms. Unilever is valued at about £100 billion, while McCormick is worth around $14.8 billion. Analysts at JPMorgan say a mix of cash and shares is likely.
Unilever’s food unit generated more than €12.9 billion in 2025, about a quarter of total sales, but growth has slowed as consumers shift away from processed foods. Analysts at Bernstein said, “The benefits of scale across categories no longer outweigh the drawbacks of complexity.”
A report by the Financial Times said Unilever ранее explored a deal with Kraft Heinz, though talks ended without agreement.
Shares in both companies rose slightly after the announcement. If completed, the deal would mark a major shift for Unilever as it moves further away from food.