Suntory Beverage & Food Ltd has announced that it has entered into an agreement to sell its Cerebos Food & Instant Coffee business in Australia and New Zealand, to the Kraft Heinz Company.

Suntory has also sold its Asian Home Gourmet Singapore to Kraft Heinz.

The total consideration of the transaction is $290 million, with the sale expected to be completed in the first quarter of 2018, subject to regulatory approval.

Cerebos’ Food & Instant Coffee business includes Fountain sauces, Gravox, Saxa salt, Foster Clark’s, Bisto and Raro brands.

Kraft Heinz Company expands its portfolio

The Kraft Heinz Company is the fifth-largest food and beverage company in the world.

It possesses a staple of well-known brands in Australia and New Zealand such as Heinz, Kraft and Golden Circle in categories including beans, sauces, soups, dressings and spaghetti.

Chief Executive Officer of Kraft Heinz Australia Bruce Lino said, “the transaction provides an opportunity for Kraft Heinz to expand its portfolio into complementary categories.”

“This reinforces our commitment and long-term plan to the Australia and New Zealand markets,” he said.

Suntory focuses on fresh coffee

Suntory Beverage & Food Ltd (SBF) will retain the Cerebos Fresh Coffee business in Australia and New Zealand.

Suntory said it will form part of a new business unit focused on capturing a larger share of the growing global coffee market.

Chief Executive Officer of Cerebos Australia and New Zealand Terry Svenson said, “The transaction enables our Fresh Coffee business to benefit from SBF’s continued investment.”

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Image- Heinz baked beans

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