Historic mustard brand Colman's spreads wings after £48bn Unilever deal

Colman's, the quintessentially English mustard brand founded more than 200 years ago, is being put up for sale following owner Unilever's landmark decision to offload its food operations for $15.7bn (£11.6bn).

Sky News can reveal that Unilever and McCormick Inc, the American food giant, have instructed bankers to seek a buyer for Colman's.

The disposal plan has been hatched because of McCormick's existing ownership of French's, one of the world's leading mustard brands, according to people close to the process.

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One source said the auction of Colman's had been initiated while competition regulators scrutinise the proposed transaction, which will create a global foods business worth in the region of $66bn (£48.4bn).

Rothschild, the investment bank, is understood to have begun contacting prospective buyers with the opportunity to buy Colman's.

The brand's valuation was unclear on Thursday, although sources described it as "not material".

Colman's was founded in 1814 by Jeremiah Colman, when he began milling flour and crushing mustard seeds in Stoke Holy Cross, near Norwich, Norfolk.

He formed a partnership with his nephew, James, in 1823, when they created their first mustard powder, with the renowned bull's head logo being introduced in 1855.

Colman's was granted a royal warrant by Queen Victoria in 1866.

In 1938, the company merged to form part of Reckitt & Colman, with the brand being acquired by Unilever in 1995.

The Colman's name has close ties to Norwich, and sponsored the city's football club between 1997 and 2001.

It revived the links between them in 2023 with another temporary commercial partnership.

In a statement issued in response to an enquiry from Sky News, a Unilever spokesperson said: "A decision has been taken to market the Colman's brand and assets to potential buyers in order to proactively seek to address potential competition concerns from the planned combination of Unilever Foods and McCormick.

"Discussions are ongoing and the operations continue as usual."

McCormick referred enquiries about the Colman's process to Unilever.

The American group's multibillion-pound swoop on Unilever's food operations will see it acquiring brands such as Hellmann's, Marmite, Knorr and Pot Noodle, cementing its status as one of the world's largest packaged foods businesses.

Unilever had previously explored a sale of some of its heritage British brands such as Colman's and Marmite but opted not to proceed.

The American company has said it will seek a secondary listing on the London Stock Exchange, while establishing an international headquarters in the Netherlands.

Under the transaction, which should close next year, Unilever shareholders will receive paper amounting to 65% of the combined group, with McCormick's investors holding the remainder.

Unilever, meanwhile, will become a 'pure-play' home and personal care business focused on brands such as Dove, Persil and Lynx.

Some investors have questioned the decision by Fernando Fernandez to offload the food arm, although he has insisted that it creates value for shareholders by giving them an interest in two distinct companies focused on their specialist operations.

(c) Sky News 2026: Historic mustard brand Colman's spreads wings after £48bn Unilever deal