Unilever in Talks to Merge Food Business with McCormick

Unilever, the Anglo-Dutch consumer goods giant behind brands like Marmite, Dove, and Hellmann’s mayonnaise, is in advanced talks to merge its food business with McCormick & Company, the US-based spice and seasoning maker. The potential deal would combine Unilever's food unit, which includes Knorr and other major brands, with McCormick’s portfolio of iconic condiments like Cholula hot sauce.

According to multiple reports from The Guardian, TimesLIVE, and Reuters, Unilever confirmed it has received an inbound offer for its food business. The discussions mark a significant step in CEO Fernando Fernández’s strategy to reposition the company towards higher-margin beauty, personal care, and home products categories. This move follows last year's spin-off of Unilever's ice-cream division, which included brands like Ben & Jerry’s.

The food unit under consideration made up about a quarter of Unilever's total sales in 2025, generating more than €12.9 billion (R250.89bn) last year, as reported by TimesLIVE. The companies are exploring an all-stock deal that could be finalized within weeks. However, there is no certainty that a deal will be agreed upon, and financial details have not been disclosed.

The potential merger comes amid broader industry trends of consolidating food assets. Earlier this year, Unilever had held talks with Kraft Heinz to combine their food operations, but those discussions ended without an agreement. Analysts suggest that the current deal would allow Unilever to focus on its beauty and personal care segments, which have shown stronger growth prospects.

Unilever's shares rose more than 1% in early trading on Friday following the announcement. The company has been under pressure from investors to streamline its portfolio and focus on higher-growth areas. The food business, while profitable, has faced challenges such as weak demand due to budget-conscious consumers and the rising adoption of weight-loss drugs.