Unilever confirms talks with McCormick regarding food business sell-off
Unilever released a statement confirming that it was in talks with spice maker McCormick & Company about potentially selling off its Food division. Unilever said that it received an offer from McCormick, but stressed that no agreements have been made and there is no guarantee that anything will come from these talks.
The statement resealed by Unilever’s executive board suggests that the company wasn’t really considering a sale. “The Board believes Foods is a highly attractive business, with a strong financial profile led by market-leading brands in growing categories, and is confident in the future of the Foods business as part of Unilever.”
The statement follows reports in the Wall Street Journal and Bloomberg that Unilever was considering selling off its Food business and continuing as a maker of only household and personal care products. The Anglo-Dutch company already spun off its ice cream division last year.
The move would take Unilever out of competition with big food rivals like Heinz and Nestle, and put it into more direct competition with household and personal care brands like L’Oreal and Estée Lauder.
According to Bloomberg, Unilever CEO Fernando Fernandez previously said that he considers beauty, personal care, and well-being as the keys to the company’s future growth. In the medium term, he hopes to generate two-thirds of Unilever’s turnover from brands like Dove soap, Liquid IV hydration sachets, and Dermalogica skin care.
