New Zealand’s competition authority has approved Kraft Heinz’s acquisition of the food and instant coffee business of Cerebos Gregg’s.
The approval requires Kraft Heinz to divest some of Cerebos Gregg’s sauce brands.
Kraft Heinz is expanding its brands marketed in Australia and New Zealand with its purchase of the Cerebos food and instant coffee business from Japan’s Suntory Group.
The announced purchase price is A$290 million.
Kraft Heinz gains popular brands such as the Gravox gravies, which is one of the all-time great Australian brands and traces its roots back to 1917.
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.”
Cerebos’ Food & Instant Coffee business includes iconic 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 market-leading brands across a number of categories including sauces, gravies, herbs & spices, salt, condiments, Asian sauces, desserts and cooking ingredients.
The sale agreement does not include the Cerebos Fresh Coffee business in Australia/New Zealand, which SBF will retain.
© 2018 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.