Kraft Heinz will sell its 50.1% stake in its South African operations to its joint venture partner Pioneer Foods.
The move sees Heinz Foods SA become a wholly-owned subsidiary of South African company Pioneer. Terms of the deal were not disclosed and it is expected the transaction will close in the first quarter of 2018.
Pioneer will also be entering into a two-year agreement with Kraft Heinz to manufacture and distribute Heinz tomato ketchup. It will also distribute HP and Lea & Perrins products in South Africa.
Felipe Guimaraes, managing director of Kraft Heinz Middle East and Africa, 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.”
Pioneer Foods CEO Tertius Carsten added: “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.”
© FoodBev Media Ltd 2020
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