Consumer goods giant Unilever is exploring a potential separation of its food business, as it looks to sharpen focus on faster-growing segments like beauty, personal care, and wellbeing.
According to sources, the company is in early-stage discussions with advisors to evaluate options that could include spinning off all or part of its food portfolio. While no final decision has been made, any move is unlikely before 2027 and could value the food division at tens of billions of dollars.
A separation would allow Unilever to concentrate on high-margin brands such as Dove and Axe, aligning with CEO Fernando Fernandez’s strategy to pivot toward beauty-led growth. Analysts note that the company has already been actively streamlining its portfolio, signalling a clear shift in long-term priorities.
Unilever’s food division includes well-known global brands like Hellmann’s, Knorr, Maille, and Marmite, with Hellmann’s and Knorr alone contributing a significant share of total food sales.
The potential move follows a series of portfolio reshaping efforts by the company. In 2025, Unilever spun off its ice cream business into a separate entity, Magnum Ice Cream Co., while continuing to divest smaller and non-core food brands over the years.
The strategic rethink comes amid broader challenges in the global food sector, including slowing consumer demand, rising competition from private labels, and shifting consumption patterns driven by health trends. As a result, large FMCG players are increasingly prioritising categories with stronger growth and pricing power.
While Unilever may ultimately retain parts of its food portfolio or pursue a partial spin-off, the ongoing review underscores a clear direction: a leaner business model built around beauty, personal care, and wellness-led growth.
