Unilever confirms talks with Schwartz seasoning proprietor over sale of meals enterprise because it narrows deal with well being

Unilever has confirmed talks with US firm McCormick about selling its food business, as it pivots towards its health and beauty products.

The consumer goods giant said it had received an offer for its food division, which would bring together Unilever’s Hellmann’s and Knorr brands with McCormick, the owner of seasoning brand Schwartz. 

While home to iconic brands, Unilever’s food division has come under pressure from softening consumer demand and the increasing popularity of weight-loss drugs.

A sale of the food business would mark the final step in boss Fernando Fernandez’s plan to focus on health and personal care brands. 

Under Fernandez, Unilever has spun off its ice cream division and sold part of its food portfolio, including healthy snack line Graze. He recently reiterated plans to focus the business on beauty as sales are hit by ‘subdued’ markets.

While hero brands Dove and Vaseline helped to power growth and offset a decline in food products, Fernandez insisted its food arm remains ‘a very attractive business’.

But Unilever may be pushed to sell Marmite to another buyer, says Dan Coatsworth, head of markets at AJ Bell. 

‘The US suitor is primarily interested in sauces and spices, and for Unilever’s portfolio that means Knorr’s seasonings and Hellmann’s mayonnaise. It might not have any trouble offloading Marmite, with the likes of Associated British Foods, Kraft Heinz or Premier Foods being logical buyers.’

In an update to investors on Friday morning, Unilever said there was ‘no certainty’ that a deal for the food business, which makes up about a quarter of its total sales, would be agreed.

Any deal would value the division at tens of billions of dollars, according to reports. 

Coatsworth said: ‘It wouldn’t be out of the question for someone to pay between 1.5 and three times sales for a branded food producer. Unilever generated €12.9 billion revenue in 2025 for its food arm, implying a potential takeout price in the region of €20 to €40 billion.’

It nevertheless stressed that the food business is ‘a highly attractive business, with a strong financial profile led by market-leading brands’. It also said that it is ‘confident in the future of the foods business as part of Unilever’.

There had been reports that Unilever had held talks on a megamerger with Kraft Heinz’s condiments business, which owns Heinz ketchup and Philadelphia cheese. 

Unilever’s share price has trailed the FTSE 100 over the past five years. It has gained just over 9 per cent, while the FTSE has climbed 50 per cent over the same period. 

Shares in the consumer goods firm rose 1.3 per cent this morning.