British multinational Unilever is in talks with US-based spice, seasoning and condiment manufacturer McCormick and Company over the sale of its multi-billion-dollar food division.

Both companies have confirmed via press release that McCormick has made an offer for the business, and that talks are ongoing, but neither has indicated that a transaction has been agreed in principle.

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.”

This follows reporting by the Financial Times that recent talks with Kraft Heinz over a merger of the two companies’ food brands have not come to fruition. Food has been a drag on Unilever’s growth, expanding more slowly than its homecare, health and beauty and personal care divisions.

Health-conscious consumers in developed markets are moving away from its pre-packaged products, which include well-known brands such as Pot Noodle and Hellmann’s mayonnaise.

An acquisition by McCormick’s would represent a significant shift for both companies, but particularly for the condiment manufacturer. In 2025, Unilever’s food division made €2.9 billion ($3.35 billion) in profit from €12.9 billion in revenue, while McCormick’s entire operation generated $7 billion in revenue and an operating income of $1 billion.

It would also allow McCormick to expand into emerging markets, where Unilever already has a significant presence.

For Unilever, offloading the division would allow the company to shed a low-growth area of its business and – judging by early market reaction – please shareholders: the company’s shares are currently trading up 1.13 per cent since the announcement.

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