The acquisition is part of a series of international transactions by which the parent Kraft Heinz Foods Company will acquire Cerebos’ New Zealand, Australia and Singapore food and instant coffee businesses.
In Australia, Kraft Heinz Australia Pty Limited, another subsidiary, will acquire 100% of the shares in Cerebos (Australia) Limited, while in Singapore, Heinz Asean Pte Ltd will acquire 100% of the shares in Asian Home Gourmet Pte Ltd .
Interestingly, the application is subject to New Zealand’s Heinz Wattie’s divesting its assets in tomato, barbecue, and steak and Worcestershire sauces, which it supplies to supermarkets and the food service industry in New Zealand under the brands Wattie’s, Heinz, Lea & Perrins, HP and Gourmet.
Heinz Wattie’s must also divest the right to use the Gregg's and F. Whitlock & Sons brands to address competition concerns.
The divestment is expected to take place six months after the acquisition.
This would include all intellectual property and other assets necessary to operate the business as an independent business. The purchaser will be able to be active in the New Zealand market in manufacturing the sauce products, or through co-packing arrangements with a third-party manufacturer.
Kraft Heinz’s core products are beverages, cheese, convenience foods, dairy foods and snack foods. In New Zealand, Heinz Wattie’s manufactures and supplies jams, dressings, soups, sauces, beans, spaghetti, canned fruit and vegetables, frozen meals and vegetables, and pates and dips.
The transaction, pending approval, would provide an opportunity for Heinz to expand its portfolio into complementary food categories, while streamlining its product categories.
Suntory Beverage & Food Asia Pte Ltd, owner of Cerebos, is selling its Cerebos food and instant coffee business to focus on its core business — beverages.