Global FMCG major Unilever is reportedly in discussions to combine its food business with U.S.-based spice giant McCormick & Company in a potential all-stock deal that could materialise in the coming weeks. If finalised, the move would bring together a portfolio of iconic brands, including Unilever’s Hellmann’s and McCormick’s Cholula, under a single entity—potentially reshaping the global packaged food landscape.
The development comes as Unilever evaluates strategic options to streamline its business and sharpen its focus on higher-growth segments such as beauty, personal care, and wellbeing. The company has been under pressure to improve performance in its food division, which has been impacted by slowing demand as consumers increasingly cut back on discretionary spending and shift toward more affordable private-label alternatives. Additionally, broader global trends—including changing dietary habits and the growing adoption of weight-loss drugs—have further weighed on consumption in certain food categories.
This potential tie-up aligns with a series of portfolio restructuring efforts by Unilever in recent years. The company has already explored divestments of legacy food brands such as Marmite, Colman’s, and Bovril, while also spinning off parts of its ice cream business. Reports also suggest that Unilever had previously engaged in discussions with Kraft Heinz regarding a possible merger of certain food assets, though those talks did not progress.
For McCormick, the deal could provide an opportunity to significantly scale its global presence and diversify beyond spices and seasonings into broader packaged food categories. The company, currently valued at around $14.5 billion, has also been navigating its own challenges, including margin pressures from rising input costs and tariffs.
While neither company has officially confirmed the discussions, a potential combination of Unilever’s food portfolio with McCormick would signal a major shift in strategy—highlighting how global consumer goods players are increasingly restructuring their portfolios to focus on faster-growing, higher-margin categories while seeking scale and synergies in slower-growth segments like packaged foods.
