Unilever has announced plans to sell its historic British mustard brand Colman’s as part of efforts to address competition concerns surrounding its proposed £33 billion deal to merge its food business with US spice company McCormick. The move comes amid regulatory scrutiny, as McCormick already owns the mustard brand French’s, raising potential antitrust issues.

Colman’s, founded in Norwich in 1814 and known in the UK as a staple condiment, especially with roast dinners and sandwiches, was moved from its original production sites to facilities in Burton-on-Trent and Germany in 2017. While the brand remains a significant part of Unilever’s portfolio, sources suggest its value is not substantial relative to the broader deal.

Unilever has engaged Rothschild bankers to seek potential buyers for Colman’s. Industry experts have speculated that companies such as Premier Foods, owner of Mr Kipling, and Associated British Foods, which owns Twinings tea and Ryvita, could be among interested parties. In addition to Colman’s, there has been speculation about whether other condiments, including Marmite and Hellmann’s—which collectively generate approximately £200 million in annual revenues—might also be divested, though no concrete decisions have been announced.

Unilever stated that marketing the Colman’s brand is a proactive step to address competition issues relating to the combination with McCormick, adding that discussions with interested parties are ongoing and that regular operations at Colman’s continue without interruption.

The prospective deal has drawn attention beyond just brand sales. Unilever CEO Fernando Fernandez has acknowledged that synergies from the merger could lead to changes in the company’s UK workforce of around 6,000 employees, though he did not specify the scale or timing of any potential job impacts. The uncertainty has raised concerns among observers, especially given Fernandez’s limited assurances on employment consequences.

Criticism of the deal has also emerged from some investors. Veteran fund manager Terry Smith, who divested his entire Unilever stake earlier this year, suggested the move reflects the influence of activist investor Nelson Peltz, a board member since 2022. Peltz is reported to have been a driving force behind the spin-off and merger strategy and has a history of advocating for significant changes at large corporations, including Cadbury and PepsiCo.

As Unilever moves forward with its plans, the outcome of regulatory reviews and the response from potential buyers will shape the future of Colman’s and other iconic British food brands within the group’s portfolio.