Trade Resources Company News Pioneer Foods to Buy Kraft Heinz South African JV Stake

Pioneer Foods to Buy Kraft Heinz South African JV Stake

Pioneer Food will acquire full ownership of Heinz Foods South Africa (Heinz Foods SA) by purchasing the remaining 50.1% stake in the joint venture (JV) from Kraft Heinz Company’s subsidiary Heinz SA.

Financial terms of the transaction have not been disclosed.

As per the terms of the deal, Pioneer Foods will manufacture and distribute Heinz tomato ketchup products for a period of two years.

The South African food and beverage manufacturer has also agreed to distribute HP & Lea Perrins products and certain other Kraft Heinz products, in a move to support the growth of the brands across South Africa.

Pioneer Foods CEO Tertius Carstens said: “By acquiring full ownership of Heinz Foods SA, we look forward to the further growth and development of the portfolio that includes a range of number one or two brands in their respective categories.”

The products manufactured under the Heinz stable include Wellington’s variety of sauces and condiments, the John West line of canned seafood products to go along with the Today and Mama’s range of meals, pies and pastries in the frozen prepared-meal category.

Kraft Heinz Middle East and Africa managing director Felipe Guimarães said: “We believe this change is an excellent opportunity for the business and our employees to leverage Pioneer Foods’ existing scale and platform in South Africa to grow the business further.”

The transfer of full ownership of Heinz Foods SA to Pioneer Foods is expected to be completed in the first quarter of 2018, subject to regulatory approval.

Pioneer Foods, which is listed on the Johannesburg Stock Exchange, mainly operates across Southern Africa. It supplies wholesale, retail and informal trade customers with a range of food and beverage brands, and also exports to over 60 countries across the world.

Contribute Copyright Policy