Suntory Beverage & Food Ltd has entered into an agreement to sell its Cerebos Food & Instant Coffee business in Australia and New Zealand and its Asian Home Gourmet Singapore business to The Kraft Heinz Company.
The sale agreement doesn’t include the Cerebos Fresh Coffee business in Australia/NZ, which Suntory 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 $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 market-leading brands across categories including sauces, gravies, herbs and spices, salt, condiments, Asian sauces, desserts and cooking ingredients.
The Kraft Heinz Company is the fifth-largest food and beverage company in the world. The company has a strong platform in Australia/NZ with brands such as Heinz, Kraft, Wattie’s, Eta and Golden Circle in categories including beans and spaghetti, sauces, soups and sauces, and dressings.
Kraft Heinz Australia and New Zealand CEO Bruno Lino, 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.”