Unilever is in discussions to offload its food business to McCormick in a deal that would reshape two of the world's largest consumer-goods companies, according to reporting by the Wall Street Journal and Financial Times.
Under the structure being discussed, Unilever's food division would be separated and combined with McCormick, whose portfolio spans spices, hot sauces and condiment brands. The rump Unilever would be focused on beauty, personal care and home products.
Unilever has been under sustained pressure from investors to simplify its sprawling portfolio and prioritise higher-margin categories. The company, whose food brands include Knorr soups and Hellmann's mayonnaise, has previously divested its tea business and margarine and spreads unit as part of that effort. A sale of the food division would represent the most significant structural move yet under chief executive Hein Schumacher, who took the role in 2023.
McCormick, headquartered in Hunt Valley, Maryland, has long built scale through acquisitions, including its $4.2bn purchase of French's mustard and Frank's RedHot from Reckitt Benckiser in 2017. Adding Unilever's food assets would substantially expand its reach in branded condiments and cooking ingredients.
The talks remain at an early stage and no agreement has been reached. Terms were not disclosed.
