Unilever considers potential separation of food assets

LONDON – 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, people with knowledge of the matter said.

The Anglo-Dutch consumer group is speaking with advisers as it studies future options, including a potential separation of most or all of the food business, the people said. It is in the preliminary stages of weighing possibilities such as spinning off the business as a whole, or keeping some marquee brands while separating the rest, though it may not pursue any deal before 2027, some of the people said. 

A transaction would likely value the Unilever food business at tens of billions of dollars, the people said, asking not to be identified because the information is private. The company has not made any final decisions and could opt to retain its current structure or pursue other alternatives, the people said. 

Unilever’s food assets could also attract interest from potential buyers, according to the people. A representative for Unilever declined to comment. 

Shares in Unilever are little changed in London trading in 2026, giving the company a market value of about £107 billion (S$182.4 billion). Unilever’s food brands include Colman’s condiments, Knorr stock cubes, Maille dijon mustard and Namdong instant noodles, as well as the savoury Marmite spread that is loved and hated in equal measure. 

Under chief executive Fernando Fernandez, Unilever has continued to work on transforming itself from a group selling food to one focused on beauty, personal care and well-being. In 2025, it spun off its ice cream division into Magnum Ice Cream, keeping an almost 20 per cent stake that it will sell down in the coming years.

Food sales

Elsewhere, Unilever has over the last decade sold off food assets, including its global spreads division, which included I Can’t Believe It’s Not Butter!, and more recently snack brand Graze and fake-meat maker The Vegetarian Butcher. The company still has around €1 billion (S$1.5 billion) to €1.5 billion of local food brands to dispose of.

Hellmann’s and Knorr make up 60 per cent of Unilever’s food sales, and Mr Fernandez has said this will rise to 70 per cent and 75 per cent after it gets rid of the local brands. The CEO did not rule out disposing of the entire food business when asked about the possibility in December, though he noted Unilever is outperforming the rest of the industry. 

Major food companies like Unilever and rival Nestle are struggling to drive growth as cash-strapped consumers rein in spending and turn to cheaper store brands.

The increasing popularity of GLP-1 weight loss drugs is also a threat as buyers eat less overall or opt for less calorie-dense products.

Beauty, on the other hand, has been an important growth market for multinationals, as younger and older consumers alike spend on everything from multi-step skincare routines to collections of fine fragrances. Mr Fernandez has previously said he is focused on brands like Dove soap and Liquid IV as part of his larger turnaround plan for Unilever.

Mr Fernandez has spent roughly a year in the top job following the ouster of his predecessor Hein Schumacher. Unilever’s board believed Mr Fernandez, formerly the company’s chief financial officer, would drive faster change. BLOOMBERG