Hindustan Unilever Ltd (HUL) on Friday said its foods business remains “an important and attractive segment” and clarified that it is “not in any discussions regarding divestment of the Foods portfolio” in a stock exchange filing responding to global reports of a potential restructuring at parent Unilever Plc.
The clarification shared with BSE comes after a Bloomberg report said Unilever was exploring a separation of its foods portfolio—potentially through a spin-off or partial divestment—as it sharpens its focus on faster-growing beauty, personal care and wellbeing categories, with any move likely to be long-term and not before 2027.
Industry experts say the speculation reflects a broader shift in the consumer goods sector, where packaged food businesses face slower growth even as beauty and wellbeing gain momentum, with the rise of GLP-1 weight-loss drugs such as Ozempic and Wegovy further weighing on demand for calorie-heavy foods.
Even as HUL distances itself from any divestment discussions, its India business has already pivoted beyond indulgence toward a tighter portfolio built around “Power Brands” with everyday utility.
Following the demerger and listing of Kwality Wall’s (India) Ltd in February 2026, the company exited premium frozen desserts such as Magnum and Cornetto, leaving a leaner foods and refreshments portfolio concentrated around three pillars: nutrition (Horlicks, Boost), culinary (Knorr, Kissan, Hellmann’s, Annapurna), and beverages (Brooke Bond teas and Bru coffee).
This repositioning is also redefining HUL’s approach to calorie density. While the portfolio remains energy-dense, the focus has shifted from “empty calories” and discretionary treats to “functional fuel”, with health food drinks positioned as carbohydrate-rich energy solutions and an increasing push toward protein-led and fortified offerings across the portfolio.
Over the past decade, Unilever has steadily pared back parts of its food business, including the sale of its global spreads division and the spin-off of its ice cream unit, while consolidating around larger “power brands” such as Hellmann’s and Knorr.
“While foods continue to be a core part of the company, this segment is changing due to shifting consumer behaviours, health trends, and new demand drivers that are redefining growth opportunities in the global consumer goods market, the industry analyst explained
Published on March 20, 2026
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