McCormick Eyes Unilever Portfolio in Major Industry Deal

Iconic food brands, including Marmite, Knorr and Hellmann's, could be heading for new ownership as McCormick & Company explores a significant acquisition that would reshape the global food industry landscape.

The US-based food company is in discussions with Unilever about acquiring the British consumer goods manufacturer's entire Foods business, which is valued at €12.9bn (US$14.92bn).

The potential transaction would represent one of the largest deals in the packaged food sector in recent years and could have far-reaching implications for how these household brands are managed and distributed.

McCormick confirms that discussions with Unilever are taking place, though the company cautions that there can be no certainty or assurances as to whether an agreement for a transaction will be reached.

The company adds that it regularly evaluates its portfolio and strategic options in pursuit of maximising shareholder value, consistent with its fiduciary duties and in consultation with its financial and legal advisors.

Understanding the food portfolio

The Unilever Foods business encompasses some of the most recognisable products in kitchens worldwide.

Hellmann's mayonnaise alone is valued at nearly €3bn (US$3.45bn), while Knorr stock cubes and seasonings, along with Hellmann's, reportedly account for 60% of Unilever's food sales, according to Bloomberg.

Beyond these flagship products, the portfolio includes Marmite, the distinctive yeast extract spread, and Horlicks, the malted drink brand.

This collection of products spans multiple categories within the food sector, from condiments and spreads to cooking ingredients and beverages.

According to Unilever's 2025 Annual Report, the Foods portfolio experienced a 3.2% decrease compared to the prior year, impacted by adverse currency movements.

This was partially offset by 2.5% underlying sales growth. Heiko Schipper, Business Group President of Unilever's Foods, says: "We delivered a solid performance despite slow markets, driven by innovation in our Power Brands and by stepping up gross margin through a simplified and sharpened portfolio."

Industry pressures driving change

The potential sale reflects broader challenges facing the packaged food industry.

According to McKinsey, many brands that manufacture consumer packaged goods have been seeing demand soften in legacy categories, whilst consumers have been trading down, reassessing brand loyalty and changing how and where they spend.

These market dynamics could be prompting Unilever to reconsider its Foods business strategy.

The move follows the company's 2025 demerger of The Magnum Ice Cream Company, which Unilever says made it a more focused company.

Bloomberg reports that Unilever is in the preliminary stages of weighing possibilities such as spinning off the business as a whole, or keeping some marquee brands while separating the rest, though it may not pursue any deal before 2027.

McCormick's strategic positioning

For McCormick, acquiring Unilever's Foods business would significantly expand its portfolio beyond its current brands, which include Cholula, Frank's RedHot, French's and Schwartz.

However, the financial scale of such a transaction could be substantial.

A deal would likely value the Unilever Foods business at tens of billions of dollars, Bloomberg reports.

The market capitalisation difference between the two companies is considerable. Unilever's current market cap stands at US$137.53bn, while McCormick's is US$14.51bn.

This disparity suggests that any transaction would require careful financial structuring and could potentially involve significant financing arrangements.

Unilever confirms that it has received an inbound offer for its Foods business and is in discussions with McCormick about the matter.

However, the company notes there can be no certainty that any transaction will be agreed upon between the two companies.

The statement comes after Bloomberg's reporting suggests that Unilever is considering a split of its food assets, speaking to people with knowledge of the matter.

The outcome of these discussions could fundamentally alter the competitive landscape in the global food industry and determine the future direction of some of the world's most established food brands.