Why Unilever is Weighing Sale of Foods Assets to McCormick

Unilever is considering a potential sale of its foods assets, which include Marmite, Horlicks and Knorr.

The multinational consumer goods company, based in the UK, is in talks with US business McCormick & Company about the potential sale. 

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

This follows its 2025 demerger of The Magnum Ice Cream Company, which Unilever says made it a more focused company.

The potential deal

Unilever's statement comes after reporting from Bloomberg suggested that Unilever was considering a split of its food assets. 

Unilever says there can be no certainty that any transaction will be agreed between the two companies.

Bloomberg says it spoke to people with knowledge of the matter, who confirmed that Unilever was in the early stages of considering a separation of its food assets as it looks for ways to further streamline its portfolio. 

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, Bloomberg reported.

Unilever's Foods business

Unilever’s Foods business is made up of a variety of products and valued at €12.9bn (US14.92bn).

This includes Hellman’s mayonnaise, which alone is valued at nearly €3bn (US$3.45bn).

Its portfolio also includes Knorr, a popular stock and seasoning product, and Marmite. According to reporting from Bloomberg, Hellmann’s and Knorr make up 60% of Unilever’s food sales. 

According to Unilever’s 2025 Annual Report, Unilever’s Foods portfolio decreased by 3.2% 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, said: “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.”

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

Unilever reported EUR$50.5bn (US$58.4bn) turnover total in 2025. 

The company’s market cap is US$137.53bn, while McCormick’s market cap is US$14.51bn.

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

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McCormick's response

McCormick is an American food company with brands including Cholula, Frank's RedHot, French's and Schwartz.

The company said in a statement that the discussions with Unilever are ongoing and there can be no certainty or assurances as to whether an agreement for a transaction will be reached

McCormick added 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.