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Tuesday, November 7, 2017

Heinz Foods South Africa turning into a wholly owned subsidiary of Pioneer

The US multinational Kraft Heinz is selling its 50.1% stake in its South African operations to joint-venture partner Pioneer Foods for an undisclosed amount.


Pioneer said on Monday evening that it was turning 'Heinz Foods South Africa into a wholly owned subsidiary'.

Kraft Heinz’s Middle East and Africa MD, Felipe Guimaraes, said Pioneer had the "existing scale and platform in South Africa to grow the business further".

The deal allows Pioneer to manufacture Heinz’s flagship tomato sauce — or ketchup as it is known in the US — and other products for two years.

Pioneer said it would distribute HP & Lea Perrins products and some other Kraft Heinz products.
"We will continue to work with Kraft Heinz to support the expansion of the Kraft Heinz brands in South Africa," Pioneer CEO Tertius Carstens said in the statement.

BusinessdayLive SA

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