Unilever in talks to sell food business to McCormick
What's the story
Unilever, the multinational consumer goods company, is in talks with US-based spice maker McCormick & Company for a possible sale of its food division. The business includes popular brands such as Hellmann's mayonnaise and Knorr soups and seasonings. Both companies have confirmed that these discussions are ongoing but there is no certainty of a deal being reached.
Brand consolidation
Potential merger could create a culinary powerhouse
If the talks lead to a successful deal, it would bring together Unilever's popular brands such as Coleman and Marmite with McCormick's iconic Cholula hot sauce. The move comes after Unilever recently spun off its ice cream brand Magnum Ice Cream Company as part of a strategic shift toward higher-return personal and beauty categories.
Financial impact
Unilever's food business and market challenges
Unilever's food business contributed about a quarter of its total sales in 2025, amounting to over €12.9 billion ($14.91 billion). Meanwhile, the company's personal care and beauty businesses accounted for more than half of its total sales. This potential merger comes as food companies struggle with weak demand amid budget-conscious consumers opting for cheaper store brands and weight-loss drugs curbing overall consumption.
Information
Unilever's strategy to streamline portfolio
Last year, Unilever was reported to be considering selling British brands such as Marmite, Colman's, and Bovril. The move was part of strategy to streamline its portfolio and focus more on beauty and wellbeing. This possible merger with McCormick is another step in that direction.
Market comparison
McCormick and Unilever's market value
McCormick, which had forecast weak profit for 2026 due to higher tariff-related costs, has a market value of around $14.51 billion. On the other hand, London-based Unilever is valued at over $134 billion, according to data compiled by LSEG. The Financial Times also recently reported that Unilever and Kraft Heinz had held talks over a potential merger of parts of their food businesses but those discussions have since ended.