- The talks, which would have brought Heinz ketchup and Hellmann’s mayonnaise under the same brand roof, have now ended, the report said.
- The report comes on the heels of an earlier report from Bloomberg this week which said that Unilever is in the early stages of considering a separation of its food assets.
- People familiar with the matter also told Bloomberg that the company is in the preliminary stages of weighing possibilities though it may not pursue a deal before 2027.
Kraft Heinz (KHC) and Unilever (UL) reportedly held talks recently on merging their food brands.
The Financial Times reported on Wednesday that the two consumer goods companies discussed merging Unilever’s food business and Kraft Heinz’s condiments division. The talks, which would have brought Heinz ketchup and Hellmann’s mayonnaise under the same brand roof, have now ended, the report said, while also noting that a combination would have created a new entity worth tens of billions.
Unilever’s Separation
The report comes on the heels of an earlier report from Bloomberg this week which said that Unilever, the maker of Hellmann's mayonnaise, is in the early stages of considering a separation of its food assets as it looks for ways to further streamline its sprawling portfolio. The Anglo-Dutch company is considering a potential separation of most or all of its food business, the report had said, as it seeks to focus on growth from its beauty, personal care and wellbeing brands which house products such as Dove soap and Axe deodorant.
People familiar with the matter also told Bloomberg that the company is in the preliminary stages of weighing possibilities though it may not pursue a deal before 2027. The company may also opt to retain its current structure or pursue another alternative entirely, the report added.
Unilever spun off its ice cream division into Magnum Ice Cream Co last year on the heels of selling its spreads and tea divisions. The company still owns Marmite and Knorr.
Kraft Heinz, meanwhile, decided not to pursue a planned break-up in February and committed to a turnaround under new leadership.
How Did Stocktwits Users React?
On Stocktwits, retail sentiment around KHC stock stayed within the ‘bullish’ territory over the past 24 hours, while message volume remained ‘high’.
Meanwhile, sentiment around UL stock stayed at ‘bullish’ levels while message volume remained ‘extremely low’.
UL and KHC stocks have fallen 6% and 27%, respectively, over the past 12 months.
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