PepsiCo’s buys new business in South Africa

US food and beverages giant PepsiCo acquisition of South Africa-based Pioneer Foods has been cleared by competition authorities, said GlobalData.

The final hurdle was overcome when the UK’s Competition and Markets Authority (CMA), which was reviewing the deal because of competition concerns in the country’s cereal market, added its approval to the earlier all-clear given by South Africa’s Competition Tribunal.

Andy Coyne, Food Correspondent at GlobalData, said: “Approval has been a long time coming. It was back in July last year when PepsiCo swooped to buy South Africa-based food and drinks manufacturer Pioneer Foods Group with a bid worth around US$1.7bn.

“Delayed or not, the fundamentals for making this deal are still in place. PepsiCo has long-stated ambitions to further its already substantial international reach and the purchase of Pioneer – a large, branded and commoditised food supplier in South Africa – gives the company additional bulk in a relatively developed home market in the short term and a ‘beachhead’ from which to press on into the emerging markets of sub-Saharan Africa in the medium to long term.

“Pioneer has joint ventures in Namibia, Botswana, Kenya and Nigeria, a part of the world PepsiCo describes as ‘a key market for future growth’.

“While this is a long-term play, in what might be seen as an added bonus, the approval of the CMA gives it further purchase in the UK’s ultra-competitive breakfast cereal market.

“The purchase price raised a few eyebrows last summer but the logic behind what PepsiCo is trying to achieve with this deal is undeniable.”

Australia in top five of biggest sellers of food & bev businesses in 2019

Orkla, Pernod Ricard, Nestlé, Asahi, PepsiCo, Lactalis, Anheuser-Busch InBev, Azelis, Berlin Packaging, Kirin and Waterlogic were the most acquisitive companies of 2019, according to the food and drink transactions database, with each responsible for five or more takeovers.  Archer Daniels Midland, Bimbo, Diageo, Emmi, JBS and Refresco all made four purchases.

Campbell Soup was the only company to agree five or more sales, followed by Fonterra on four, then Coca-Cola, Hain Celestial and Nestlé on three.

A total of 1,290 companies were involved across 59 countries, with the United States and United Kingdom most prominent overall.

Global food and drink transactions by country 2018-19

Rank Country 2018 2019
Top buyers
1 United States 312 305
2 United Kingdom 94 93
3 France 39 51
4 Spain 29 35
5 Canada 26 25
Top sellers
1 United States 329 328
2 United Kingdom 116 130
3= Spain 34 41
France 24 41
5 Australia 22 25

Japan was the biggest net buyer (+18), followed by France (+10), then Belgium and Norway (+9 each).

The United Kingdom was the main net seller (-37), followed by the United States (-23), Australia (-16) and Brazil (-11).

Danny Celoni appointed CEO of PepsiCo ANZ

PepsiCo has appointed Danny Celoni to the role of Australia and New Zealand CEO. He will assume responsibility for the snacks and beverages portfolios, including local brands Smith’s, Red Rock Deli and Bluebird; and international brands Pepsi, Gatorade and Doritos.

Currently PepsiCo ANZ’s Commercial Director, Danny will step into the role following the appointment of former CEO, Robbert Rietbroek to Senior Vice President and General Manager of PepsiCo’s Quaker Foods North America business.

Danny joined PepsiCo in November 2016, and has more than 22 years of experience in senior sales, commercial and strategy roles and in leading large-scale businesses across multiple geographies, including 17 years with Diageo, and four years in strategy consulting.

Adel Garas, President, PepsiCo Asia Pacific, said: “Danny brings to the role a deep understanding of our customers and the Australian and New Zealand retail environments. He has been instrumental in the growth of our brands over the past 18 months and is well placed to lead the team as we chart our next chapter.”

Danny Celoni said: “I couldn’t be prouder to lead PepsiCo Australia and New Zealand. With an enviable portfolio of both home-grown and world-leading brands, and a great team of talented people, PepsiCo is in a strong position to continue to drive category-leading innovation and growth in Australia and New Zealand.”

Pepsi claims victory at the 2015 Australian Supply Chain & Logistics Awards

Pepsi has been awarded both the 2015 Supply Chain Management Award and the 2015 Storage & Materials Handling Award by the Supply Chain & Logistics Association of Australia in Sydney.

Over 55 years, the ASCL recognises an individual or a company for outstanding achievements and contribution working within the Transport, Supply Chain and Logistics Industry.

The 2015 Supply Chain Management Award is given out to encourage and acknowledge the outstanding achievement of an organisation that has demonstrated significant achievements in managing the integration of Supply Chains. This could be functional integration within an organisational Supply Chain or more widely across Supply Chains involving several organisations that have formed trading partnerships or alliances.

PepsiCo were recognised for their Supply Chain Optimisation project, which included automated palletising, AGV pallet transport and put-away/retrieval from ASRs.

Pepsi were also awarded the 2015 Storage & Materials Handling Award, which recognises the significant achievements in the techniques and technology of materials storage and handling at any stage of the supply chain.

Technology covers equipment and design techniques, including the facilitation of design and associated information and control systems.

Other awards given out at the Sydney show included the 2015 Industry Excellence Award, the Future Leaders Award, the 2015 Training, Education & Development Award and the 2015 Information Management Award.

Pepsi and Coke battle over Chobani

According to a Reuters report this morning, PepsiCo and Coca-Cola are in talks to invest in Chobani for as much $USD 3 billion for between 10 per cent and 20 per cent of the yogurt maker's equity.

Chobani is looking for a strategic investor to help expand its supply chain, distribution, manufacturing base and geographic footprint for its popular yogurts like Flip, which combine yogurt with flavors such as peanut butter and coffee, the Reuters report said.

Chobani was founded in 2005 by Turkish immigrant Hamdi Ulukaya. 

While its yogurt has become one of the top-selling yoghurt brands in the United States, Chobani has also experienced some growing pains, with private equity firm TPG Capital LP giving it a $USD750 million loan last year to help it fund a turnaround.