Kraft Heinz buys Cerebos business

The Kraft Heinz Company has entered into an agreement with Suntory Beverage & Food Ltd to buy its Cerebos Food & Instant Coffee business in Australia, New Zealand and Singapore.

Totalling $A290 million (US$227m), 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.

Bruno Lino, chief executive of Kraft Heinz Australia and New Zealand will lead the combined business, he 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.”

The sale agreement does not include the Cerebos fresh coffee business in Australia/New Zealand, which will be retained and will form part of a new business unit.