News

Kraft Heinz to acquire Suntory Australia, NZ businesses

27 Oct 2017

Suntory (SBF) is to sell its Cerebos Food & Instant Coffee business in Australia, New Zealand and Asian Home Gourmet Singapore to Kraft Heinz.

Suntory (SBF) is to sell its Cerebos Food & Instant Coffee business in Australia, New Zealand and Asian Home Gourmet Singapore to Kraft Heinz. The sale agreement does not include the Cerebos Fresh Coffee business in Australia/New Zealand, which SBF will retain and will form part of a new business unit focused on capturing a larger share of the rapidly growing global fresh coffee market.

The total consideration of the transaction is A$290 million and the sale is expected to be completed in the first quarter of 2018, subject to regulatory approvals.

Cerebos’ Food & Instant Coffee business includes food brands in Australia and New Zealand such as Fountain, Gravox, Saxa, Foster Clark’s, Gregg’s, Bisto, Raro and Asian Home Gourmet. The business has brands across a number of categories including sauces, gravies, herbs & spices, salt, condiments, Asian sauces, desserts and cooking ingredients.

Kraft Heinz is the fifth-largest food and beverage company in the world and is said to have a strong platform in Australia and New Zealand, with a stable of brands such as Heinz, Kraft, Wattie’s, Eta and Golden Circle in categories including beans and spaghetti, sauces, soups, sauces and dressings and many others.

“The transaction provides an exciting opportunity for Kraft Heinz to expand its portfolio into complementary categories, stretching the footprint of Cerebos’ brands into new categories and markets,” said Bruno Lino, CEO of Kraft Heinz Australia and New Zealand, who will lead the combined business. “In addition to the iconic local brands, Cerebos has a strong team that will play an important role in our future growth. This transaction reinforces our commitment and long-term plan to the Australia and New Zealand markets in addition to our significant investment in the Kraft brand for 2018. We will continue investing in our brands, factories and our employees to meet consumer needs and expectations.”

Terry Svenson, CEO of Cerebos Australia/New Zealand, said the company was pleased with the outcome of the transaction.