Mondelez International sells grocery brands in Australia and New Zealand to Bega
Mondelez International has entered into an agreement with Bega Cheese to sell a significant part of its grocery business in Australia and New Zealand for AUD460m ($345.8m).
The transaction includes sale of the popular Vegemite brand and other well known grocery brands to Bega.
Mondelez said that the sale will enable it to increase focus on its core snacks categories and Power Brands, including Cadbury Dairy Milk chocolate and Oreo biscuits.
Bega will acquire Vegemite, ZoOsh, and Bonox brands. It will also add ther products that use the Kraft brand under license, such as peanut butter, nut spreads, processed cheese slices, ambient cheese spread, mayonnaise, parmesan cheese, Kraft Easy Mac and Kraft Mac & Cheese.
Mondelez International Australia, New Zealand and Japan vice president Amanda Banfield said: “As we continue to execute our strategic growth plan, with a keen focus on core snacks categories and global Power Brands, we're excited to see VEGEMITE and these much-loved brands continue to grow and thrive under Bega's ownership."
As part of the acquisition, Bega will also gain a license to the Dairylea brand for use in Australia and New Zealand.
However, the Philadelphia business is not included in the transaction as it is a Mondelez International Power Brand.
Bega Cheese's executive chairman Barry Irvin said: “We believe these iconic brands alongside the Bega Cheese brand are strong building blocks to enable Bega Cheese to become a great FMCG business.
"We feel privileged to be taking on the responsibility and guardianship of one of Australia's most loved brands, Vegemite, and look forward to working with the people at 1 Vegemite Way in Port Melbourne to continue the legacy of this great company."
Under the terms of the agreement, the Port Melbourne manufacturing site will be transfered to Bega.
The transaction is expected to be completed in the coming months.
Image: Vegemite on toast. Photo courtesy of Tristanb/Wikimedia Commons.