Unilever has confirmed speculation that it could spin off its food business to become a company mainly focused on personal care, beauty and wellness.
In response to media reports, the consumer goods giant said in a statement that it is in sale discussions with US food company McCormick & Company, although there is “no certainty” that a deal will go ahead.
“Unilever notes recent media speculation regarding a potential transaction involving its foods business,” the company said in the statement.
“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.
“Unilever confirms that it has received an inbound offer for its foods business and is in discussions with McCormick & Company.
“There can be no certainty that any transaction will be agreed.”
Unilever’s beauty and personal care brands – led by Dove and Vaseline – boosted sales at the consumer goods giant in 2025, as it increased its exposure in these higher-performing divisions and moved away from food.
Unilever’s sales grew 3.5% across the business in the year to 31 December 2025, its most recent financial results published in February show.
Within that, Unilever’s beauty and wellbeing division grew 4.3% and its personal care business grew 4.7%, while food sales grew at a slower pace of 2.5%.
Fernando Fernandez, CEO of Unilever, said at the time that the company has “set clear priorities for growth”, and that building its brand portfolio for the future involves “more beauty, wellbeing and personal care”.
Unilever completed the spin-off of its ice cream business at the end of the year.
It also sold off a number of food brands, including Asian food brand Conimex, plant-based meat brand The Vegetarian Butcher, and snack box line Graze.
It has also ditched underperforming brands on the beauty side too, including selling Kate Somerville and closing ‘clean’ beauty brand REN Clean Skincare.
Unilever’s food business, which includes well-known brands such as Hellmann’s mayonnaise and Marmite, accounted for 26% of its turnover last year.
Its beauty and wellbeing wellbeing division accounted for 25% of business, and personal care 26%, with home care accounting for the remaining 23%.
“In the long run we would see a separation as adding value, with both portfolios more focused and able to allocate capital along their own core priorities,” said analysts at Deutsche Bank in a note sent prior to Unilever confirming the deal talks.
“However, it is unclear how profitable a standalone foods business would be with replicated central costs, and there would be stranded costs and tax implications for the remaining Unilever business.”
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