Multinational food giant Kraft Heinz has purchased Suntory Group’s Cerebos Food & Instant Coffee business, which includes brands like Gravox and Fountain, for $A290 million.
The sale is expected to be completed in the first quarter of 2018, subject to regulatory approvals.
The deal also includes the brands Saxa, Foster Clark’s, Gregg’s, Bisto, Raro and Asian Home Gourmet. However, it 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.
Bruno Lino, CEO of Kraft Heinz Australia and New Zealand, who will lead the combined business, said: “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.”
“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.
“As we announced in April 2017, the Food & Instant Coffee business has a number of market-leading brands across Australia and New Zealand and has made significant progress in recent years, particularly in relation to improvements in manufacturing efficiency.
“However, Food & Instant Coffee is not a core focus category for SBF and we believe this business can be maximised under different ownership. The Food & Instant Coffee business will now have opportunities to leverage Kraft Heinz’s operations to grow the business further.”