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Viewsroom

Food giants strain to cut the corporate mustard

Viewsroom

Reuters

News

4.458 Ratings

🗓️ 9 April 2026

⏱️ 16 minutes

🧾️ Download transcript

Summary

Whether it’s Kraft Heinz weighing a split of its ketchup and hot-dog units or Unilever sealing a $65 bln mayonnaise deal, edible empires are coming apart. In this week’s Viewsroom, Breakingviews columnists debate consumer groups’ sticky spot between ultra-budget and luxe rivals. Unilever food spinoff is a tricky M&A soufflé The Week in Breakingviews: End of corporate empire Unilever finds elegant M&A recipe for dud food Visit the Thomson Reuters Privacy Statement for information on our privacy and data protection practices. You may also visit megaphone.fm/adchoices to opt-out of targeted advertising.  Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0

The views expressed on this podcast are those of the participants, not of Rogers News.

0:09.0

Bigger used to be better for consumer goods groups.

0:13.1

CEOs built empires that mash together mayonnaise, shampoo, and fabrics oftener under one roof.

0:19.9

But that playbook is dying a slow depth.

0:22.6

Supermarket brands have become better, cheaper and more competitive

0:26.6

and are essentially eating the branded group's lunches.

0:30.6

So now the giants are breaking themselves apart.

0:34.6

Unilever's been on a selling spree, teas, spreads, spinning off ice cream and

0:39.5

announced a tie-up with McCormack, a US-based hot sauce maker that would create a $66 billion

0:46.5

food empire. They're not alone. Nestle is also considering selling off part of its water

0:52.4

business. GSK, Johnson & Johnson and Sinoffi have separated their consumer units.

0:57.0

The new mantra is that simple is better and being focused will gain the attention of investors.

1:04.0

But here's the question.

1:07.0

Who actually wants to own a sprawling food cast off?

1:10.0

What weird combos are coming next? And will investors actually reward these companies with better valuations if they finish this corporate surgery? All of this and more is in this week's Vues Room.

1:25.6

It's Amy. And it's Jonathan. And this is the Vs Room, your weekly dive into the biggest stories in business, economics, and corporate finance.

1:32.8

And Amy, it's kind of funny.

1:34.7

So you were out last week, and we were talking a lot about transatlantic deal making.

1:39.1

And here we have another tie up from both sides of the pond.

1:42.9

You've been covering Unilever for quite a while,

1:45.3

right? Yes, absolutely. I mean, Unilever is fascinating. I think it was like nearly a hundred

1:51.4

years ago that it was brought together by, you know, a food business and a soap maker. And now

...

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