Unilever's move to sell food business to rival McCormick

Unilever is in talks to sell its foods business to smaller rival McCormick & Company, potentially marking a major shift for the British consumer goods company as it seeks to focus on higher-growth household and personal care businesses.

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London-listed Unilever, owner of Hellmann's mayonnaise, Knorr cubes and Marmite spreads, said it had received an offer from spice maker McCormick.

McCormick, which owns the Cholula hot sauce brand, confirmed it was engaged in discussions with Unilever regarding a potential transaction involving the food business.

The talks are an acceleration of Unilever CEO Fernando Fernandez’s plan to shift Unilever towards faster-growing nonfood categories following the spin-off of its ice cream business last year.

"We think it is sensible that Unilever are looking at options for their food business," said Richard Saldanha, global equity portfolio manager at Aviva, a Unilever investor. "It's clear the company wants to focus on areas such as personal care and beauty where underlying category and volume growth are more attractive."

Unilever's food business made up about a quarter of its total sales in 2025, generating more than 12.9 billion euros ($14.91 billion) last year.

But the division is growing more slowly than Unilever's overall business and it faces headwinds from a move away from processed foods. Politicians, including US Health Secretary Robert F. Kennedy Jr, have warned about their health risks and while many consumers are turning to GLP-1 weight-loss drugs, which mean people eat less.