Unilever has confirmed it has received an approach for its foods division, as speculation continues over a potential separation of the business.
The FMCG giant said it is currently in discussions with McCormick & Company, Inc. following an inbound offer, but stressed that no deal is certain at this stage.
In a statement, Unilever said: “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 update follows reports that the company has been exploring options for its foods arm, including a potential spin-off or sale, as part of a wider strategic overhaul.
While Unilever has not confirmed any formal plans to separate the division, the acknowledgement of an approach signals growing external interest in the business and raises the possibility of a significant portfolio reshaping.
The foods division remains a substantial part of the group, generating €12.9bn (approximately £11.0bn) in revenue in 2025, although growth has lagged behind other parts of the business in recent years.
Under CEO Fernando Fernandez, Unilever has been accelerating its pivot towards higher-growth, higher-margin categories such as beauty, personal care and wellbeing, which generated €26bn (approximately £22.2bn) in revenue last year.
The company has already taken steps to streamline its portfolio, including the demerger of its ice cream business and the sale of brands such as Graze and The Vegetarian Butcher.
Against this backdrop, the future of its remaining food assets, which include brands such as Hellmann’s and Knorr, has come under increasing scrutiny.
Unilever’s statement suggests it is keen to reinforce confidence in the division, even as it explores strategic options.
For retailers and suppliers, any potential deal could have significant implications for category dynamics, particularly given the scale of Unilever’s presence across condiments, cooking aids and ambient grocery.
However, Unilever emphasised that discussions remain at an early stage and there is no certainty that a transaction will be agreed.
The update leaves open the question of whether the group will ultimately retain its foods business or pursue a more fundamental reshaping of its portfolio in the coming years.
Click here to sign up to Retail Gazette‘s free daily email newsletter
