McCormick eyes Knorr acquisition in Unilever's restructuring

McCormick in talks to buy Knorr as Unilever reshapes its food empire

American spice giant McCormick & Company is in talks to acquire Knorr, one of Germany's most recognisable food brands. The potential deal forms part of Unilever's ongoing restructuring under CEO Fernando Fernandez. If completed, the sale would mark a major shift for the iconic brand, which has been under Unilever's ownership since 2000.

Knorr first joined Unilever in 2000 after the company took over Bestfoods. Now, over two decades later, the brand may change hands again as Unilever streamlines its portfolio. The move follows Fernandez's strategy of focusing on higher-margin products amid falling consumer spending on food conglomerates.

McCormick & Company, headquartered in Maryland, is a global leader in spices and condiments. With annual revenues close to $7 billion and around 14,000 employees, the firm sees Knorr as a valuable addition. The deal, potentially worth billions, could strengthen McCormick's position in the European market.

Unilever currently operates four German production sites for Knorr and other brands. While no recent market share data for Knorr in Germany is available, the brand remains a household name. The sale reflects broader financial pressures, including tighter budgets in sectors like hospital catering, where cost-cutting has become essential.

The acquisition would allow McCormick to expand its product range with a well-established name. For Unilever, the sale aligns with its push toward more profitable segments. If finalised, the deal would reshape the ownership of a brand that has been a staple in German kitchens for generations.