FoodBev Media’s Rafaela Sousa rounds up this week’s food and beverage news, including:
Britvic announces acquisition of Jimmy’s Iced Coffee
Britvic has announced the acquisition of UK-based ready-to-drink iced coffee brand, Jimmy’s Iced Coffee.
Jimmy’s coffees have fewer calories per serving than the category average, come in fully recyclable packaging and are HFSS-compliant.
With the acquisition, Britvic intends to accelerate the growth of Jimmy’s by leveraging its customer relationships to drive new listings and increase distribution, while increasing cost efficiency through Britvic’s supply chain expertise and procurement capability.
Kellogg files Form 10 ahead of business separation
Kellogg has announced the filing of a Form 10 registration statement with the US Securities and Exchange Commission relating to its plan to separate into two businesses.
In June 2022, the company announced that its board of directors had approved a plan to pursue a separation of its North American cereal business via a tax-free spin-off. Earlier this year, it revealed the names of the two resulting public companies that it will create.
Kellanova will be a global snacking, international cereal and noodles and North America frozen foods business. WK Kellogg will be a cereal company operating in the US, Canada and the Caribbean.
The separation transaction is targeted to be completed during the fourth quarter of 2023, subject to certain customary conditions including final approval by the board and effectiveness of the Form 10 registration statement.
Filed on 24 July, the Form 10 is subject to change and will be made final prior to the effective date of the spin.
Ferrara to acquire Brazilian sweets and snacks company Dori Alimentos
Ferrara Candy Company, a US sweets manufacturer owned by Ferrero Group, has agreed to acquire Dori Alimentos for an undisclosed sum.
Upon the completion of the transaction, Dori’s workforce of over 3,100 employees will join Ferrara’s existing team of 4,600 members. Together, the companies will drive forward a “shared vision and strategy”.
The transaction, which is expected to close in the fourth quarter of 2023, is subject to certain closing conditions.
Bud Light controversy continues as US governor threatens legal action
The controversy surrounding AB InBev’s Bud Light brand has continued this week, as Florida Governor Ron De-Santis has asked the State Board of Administration to “initiate a review” into its holdings with the parent company.
The Bud Light brand has been subject to backlash in the US since 1 April after it entered a minor partnership with transgender influencer Dylan Mulvaney who promoted the beer brand in a video on Instagram.
The sponsorship led to calls for a boycott of Bud Light from conservatives.
In the letter sent on 20 July, DeSantis suggested that AB InBev had “breached legal duties owed to its shareholders” when it decided to associate with “radical social ideologies”. DeSantis requested that the State Board of Administration “immediately initiate a review” to examine “how AB InBev’s conduct has impacted and continues to impact the value of State Board of Administration’s AB InBev holdings”.
In May, AB InBev’s CEO, Michel Doukeris, said during an investor conference call that Bud Light’s volume had declined in the US during the first three weeks of April, representing around 1% of overall global volumes for that period.
Mulvaney posted a TikTok video in June alleging Bud Light never reached out to them as she faced online hate following the company’s promotion.
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