Finance
Unilever in Talks to Combine Food Business With McCormick, Wsj Reports
Published by Global Banking & Finance Review®
Posted on March 19, 2026
2 min readLast updated: March 20, 2026
Quick Summary
Unilever is reportedly exploring an all‑stock combination of its food business with McCormick, as it looks to streamline amid sluggish packaged‑food demand, following dropped talks with Kraft Heinz and broader industry divestiture trends.
Unilever in talks to combine food business with McCormick, WSJ reports
Potential Merger and Industry Implications
Overview of the Reported Deal
March 19 (Reuters) - Unilever is in talks to separate its food business and combine it with spice maker McCormick in an all-stock deal that could come within weeks, the Wall Street Journal reported on Thursday, citing sources.
Brands Involved in the Potential Merger
A deal, if it succeeds, could bring brands such as Unilever's Hellmann's mayonnaise and Maryland-based McCormick's iconic Cholula hot sauce under one roof.
Verification and Company Responses
Reuters could not immediately verify the report. The companies did not immediately respond to Reuters requests for comment.
Unilever's Strategic Moves
Separation of Food Assets
Unilever has been weighing a broader separation of its food assets, several news outlets reported this week, as the consumer goods maker plans to streamline its business.
Previous Considerations and Portfolio Streamlining
Last year, Reuters reported that the Dove soap maker was considering selling British brands including Marmite, Colman's and Bovril to streamline Unilever's portfolio and focus on beauty and wellbeing.
Market Context and Financials
Challenges Facing Food Companies
Food companies have been struggling with weak demand as budget-conscious consumers cut back on spending and opt for cheaper store brands, while the rising adoption of weight-loss drugs has also curbed overall consumption.
Company Valuations
McCormick, which in January forecast weak profit for 2026 due to higher tariff-related costs, has a market value of around $14.51 billion, while London-based Unilever is valued at more than $134 billion, according to LSEG-compiled data.
Other Industry Talks
Unilever and Kraft Heinz Discussions
The Financial Times reported on Wednesday that Unilever and Kraft Heinz had recently held talks over a potential merger of parts of their food businesses, but those discussions have since ended.
Reporting Credits
(Reporting by Fabiola Arámburo and Mrinmay Dey in Mexico City; Editing by Shailesh Kuber and Alan Barona)
Key Takeaways
- •Unilever may merge its food division with McCormick in an all‑stock deal, according to WSJ, potentially finalizing in weeks (foodingredientsfirst.com)
- •This move follows earlier, now‑ended merger discussions between Unilever and Kraft Heinz, as the company reconfigures its food portfolio (reddit.com)
- •Unilever’s food division has underperformed relative to other segments; the firm is honing in on power brands like Hellmann’s and Knorr while divesting lower‑growth lines amid weak packaged‑food demand (investing.com)
References
Frequently Asked Questions about Unilever in talks to combine food business with McCormick, WSJ reports
1What companies are involved in the potential food business merger?
Unilever and McCormick are in talks to combine their food businesses in an all-stock deal.
2What is the main reason behind Unilever’s move to separate its food business?
Unilever is considering separating its food business due to weaker demand for packaged foods and broader economic uncertainty.
3Has the merger between Unilever and McCormick been officially confirmed?
The potential merger has not been officially confirmed, and both companies did not immediately respond to requests for comment.
4Were there talks with other companies regarding Unilever's food business?
Yes, Unilever recently held talks with Kraft Heinz over a possible merger of parts of their food businesses, but those discussions have ended.
