Unilever Plc is in talks to sell its food business to McCormick & Co., a deal that would mark the end of Unilever’s nearly 100-year role competing with food rivals like Kraft Heinz Co. and PepsiCo Inc. and hasten its transformation into a leading beauty, wellness and personal care company.
For Hunt Valley, Md.-based McCormick, which has been in business for more than a century and is best known for its spices and herbs, the offer for Unilever’s food business represents an opportunity to deepen its exposure to the condiment and sauces markets and expand its reach in international markets.
London-based Unilever has been reducing its reliance on food, with recent divestment of divisions offering tea, spreads, and snacks. Unilever last year spun off its ice cream business into the Magnum Ice Cream Co., retaining a 20% stake.
Fernando Fernandez, Unilever’s chief executive officer since March 1 of last year, has let it be known that he sees beauty, wellness and personal care as foundations for the future.
McCormick has been expanding beyond spices and into sauces and flavored mayos. In 2017 it acquired Reckitt Benckiser’s food division, home of French’s Mustard, Frank’s RedHot sauce and Cattlemen’s.
