Why Unilever sold its food business

Unilever had already sold Algida ice creams. Now it has sold the rest of the food business for EUR 13.6 billion. It did this not so much because of the margins, which – in 2025 – are on a par with those of the personal care sector(source: Reuters ), but because the food sector is the least growing within the company’s portfolio.

Then there was the pressure from investors to divest the food brands, which increased after it emerged in 2022 that billionaire activist and shareholder Nelson Peltz had acquired a stake in Unilever. Peltz has been linked to the exit of former CEOs Alan Jope and Hein Schumacher, while Fernandez, Unilever’s former chief financial officer and long-time beauty and wellness executive, has been promoted to focus on rationalising the company’s portfolio. The deal will create a combined company that will generate sales of around USD 20 billion in the fiscal year 2025 .

Despite this, Unilever’s shares fell 3% to their lowest in almost a year. The deal with Mc Cormick buying from Unilever was criticised by analysts and the stock plunged (-9%).

Interestingly:‘Unilever Foods’ Knorr brand reaches over 5 billion consumers in more than 90 countries, while Hellmann’s mayonnaise is sold in over 65 countries. McCormick, with its 137-year history, counts French’s, Frank’s RedHot, Cholula, Lawry’s and OLD BAY among its brands. McCormick also develops custom flavourings and seasonings through its Flavor Solutions division. The merged company will create a restaurant platformthat will benefit from McCormick’s dining room management presence and Unilever Foods’ chef-driven kitchen management presence, with projected fiscal year 2025 revenues of about $6 billion, the companies said. The combined business will also focus on technical expertise and research and development.” Progressive Grocer

Of course, there is also the fact that this will allow Unilever to focus on personal and beauty care and ‘health’ products (supplements, vitamins, etc.).

Below: next to the brands managed by Unilever in Italy, you can see the operating income and growth of Unilever’s divisions(source: Reuters). Read also : Food and wine: how menus and eating habits are changing in the US.

Compiled 31 March, updated 10 April 2026