(BRK.A), (BRK.B)
The Kraft Heinz Company has entered into an agreement to acquire Companhia Hemmer Indústria e Comércio, a Brazilian company focused on condiments and sauces.
The acquisition of Hemmer – a 106-year-old company headquartered in Blumenau, Santa Catarina – is designed to expand consumers’ taste options in Brazil, while supporting Kraft Heinz’s strategy of growing its International Taste Elevation product platform and its presence in emerging markets.
“This acquisition offers us a valuable opportunity to accelerate our international growth strategy centered around Taste Elevation — our portfolio of high-quality products that enhance the taste of food,” said Rafael Oliveira, International Zone President at Kraft Heinz. “Hemmer is a legendary company in Brazil, growing net sales significantly, and will bring a delicious and diverse portfolio of products to Kraft Heinz.”
The combination aims to accelerate the growth of both companies, expanding Kraft Heinz’s presence in Brazil and leveraging its already successful expansion in condiments and sauces. Hemmer will benefit from Kraft Heinz’s distribution network and go-to-market model, including the growing foodservice channel in Brazil.
“In the last few years, Hemmer has been further strengthening itself as a food company synonymous with flavor, quality, and portfolio variety. We are extremely honored by this potential acquisition and the entire expansion potential this negotiation offers by continuing our family history in the region,” said Christian Luef, Hemmer CEO.
The completion of this transaction is subject to regulatory approvals by CADE (Brazil’s Administrative Council for Economic Defense).
The acquisition continues to expand Kraft Heinz’s focus on the international market. In June 2021, Kraft Heinz acquired Assan Foods, a rapidly growing sauces-focused business, from Turkish conglomerate Kibar Holding.
© 2021 David Mazor
Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.