Unilever weighs major separation of food assets in bold FMCG strategy shift
Key takeaways
- Unilever is in early-stage talks with advisers about separating most or all of its food business, according to reports.
- The move follows a string of divestments including ice cream, Graze, and The Vegetarian Butcher, as CEO Fernando Fernandez steers the group toward beauty and personal care.
- A deal is unlikely before 2027, and the company may still opt to retain its current structure.
Unilever is reportedly in the early stages of considering a full separation of its food assets, a move that could be worth tens of billions of dollars and mark a dramatic acceleration of the consumer goods giant’s retreat from food and beverages.
The company is already speaking with advisers about potential options, including spinning off most or all of its food business, according to Bloomberg, which cites people familiar with the matter. Unilever could also opt to retain some marquee brands while offloading the rest — though a deal is unlikely before 2027, and the company may ultimately decide to keep things as they are.
It’s unclear whether drinks brands, such as Lipton and Brooke Bond, would be included in any separation.
We have contacted Unilever for comment.
A portfolio in flux
If it goes ahead, the move would cap an extraordinary period of portfolio reshaping for the Anglo-Dutch multinational. In December 2025, Unilever completed the demerger of its ice cream division into The Magnum Ice Cream Company, listed in Amsterdam, London, and New York. That followed the sales of Graze, Unox, Zwan, and plant-based brand The Vegetarian Butcher — and late last year, reports emerged that Marmite, Colman’s, and Bovril could also be offloaded.
Food now accounts for roughly 25% of Unilever’s revenue, down from as much as 60% in the 1990s. In 2025, the food division posted turnover of €12.9 billion (US$14.3 billion), with underlying sales growth of 2.5%. Hellmann’s and Knorr together make up around 60% of that business — a share CEO Fernando Fernandez has indicated he wants to push toward 70–75%.
Betting on beauty?
Under Fernandez, who took over from Hein Schumacher in March 2025, Unilever has been pivoting hard toward beauty, personal care, and well-being — higher-margin categories where it sees greater premiumization potential and stronger long-term growth. Beauty & Wellbeing and Personal Care together generated €26 billion (US$28.8 billion) in 2025 turnover, more than double the food division.
For the wider industry, a food exit of this scale would be seismic — unlocking major acquisition targets for competitors, private equity firms, and regional players, and deepening a broader trend of FMCG conglomerates shedding food assets in favor of wellness-driven portfolios.
Kraft Heinz, Nestlé, and Coca-Cola have all pursued similar restructurings or portfolio overhauls in recent months.
