Page 5 - Food&Drink Magazine August 2019

NEWS
Campbell Soup Co. accepts KKR’s offer for Arnott’s
CAMPBELL Soup Co. has accepted an offer from global buyout firm, KKR, to buy its Australian business, Campbell Arnott’s. A
spokesperson for KKR told Food & Drink Business the agreement was reached
late 23 July but would not comment on the rumoured US$2.2 billion price tag. The news came after months of speculation and potential buys.
The news came a week after it announced it will sell its European snack food business, Kelsen Group, for $300 million to an affiliate
of Italian company, Ferrero. Campbell said it will allow the
company to reduce its debt and was part of its plan to sell its entire Campbell international business.
Campbell president and CEO Mark Clouse said in a statement: “The sale of Kelsen Group supports our strategy to focus on North America wherewehaveiconicbrandsand
strong market positions, while reducing debt. “Throughout the divestiture process, we have considered many options
for our valuable international assets. Selling Kelsen separately from the rest of our international business generates the greatest possible value for Campbell.
“We are committed to the divestiture of the remainder of our international operations and will remain disciplined
as we move forward.”
It comes after the company sold its organic beverages and dressings business, Bolthouse Farms, for $510 million to a private equity firm in June. That sale was another divestiture in its program to offload its Campbell Fresh and international divisions in Australia, Indonesia, Malaysia, HongKongandJapan. ✷
Woolworths to spin off ALH, Endeavour Drinks
✷ TOP HITS
THE MOST VIEWED STORIES ON OUR WEBSITE LAST MONTH
CONNOISSEUR’S NEW NATIVE COLLECTION Connoisseur’s
limited-edition range
of ice cream flavours inspired by Australian native ingredients will be in the freezer aisle from this month.
✷ SEE MORE ON PAGE 48
CAMPBELL’S
SOUP CO ACCEPTS KKR’S ARNOTT’S OFFER After months of conjecture on potential buyers, Campbell’s agreed to KKR’s offer for Arnott’s. See story on this page.
✷ SEE STORY OPPOSITE.
SNACK BRANDS AUST OWNER AND INTERSNACK GROUP DEAL
Owner of Snack Brands Australia, Universal Robina Corp, and German-based snack food maker, Intersnack Group have announced a strategic partnership.
✷ SEE STORY ON PAGE 6.
SUGAR CRASH: WHO TARGETS BABY FOOD MARKET
The World Health Organisation has criticised Europe’s baby food market for high sugar levels.
✷ SEE STORY ON PAGE 7.
AUSTRALIAN ENGINEER DEVELOPS FOOD WASTE SOLUTION
A Sydney-based engineer has been recognised for his 3D-printed flexible food sensors.
✷ SEE STORY ON PAGE 41.
WOOLWORTHS SPIN OFF
Woolworths Group will spin off its drinks and hospitality businesses, ALH and Endeavour Drinks.
WOOLWORTHS Group Ltd has announced it will combine its drinks and hospitality businesses into a single entity and then separate the business through a demerger. Endeavour Drinks and ALH Group will become Endeavour Group Ltd. It is expected to occur in calendar year 2020.
Woolworths group chairman Gordon Cairns says the board believes the merger and
separation is in the “shareholders’ best interests”.
Woolworths Group CEO Brad Banducci said: “As we look to build customer differentiation in all of our businesses, and prepare for an agile and digitally-enabled future, we have decided to simplify Woolworths Group through a combination and subsequent separation of Endeavour Group.”
The merger will create Australia’s largest integrated drinks and hospitality business, a company statement said. Endeavour Group will have 1500 BWS and Dan Murphy’s retail drinks outlets and 327 ALH hotels.
ALH retail drinks outlets currently make up roughly 35 per cent of Woolworths Group retail drinks sales with 86 Dan Murphy’s and 512 BWS stores owned by ALH at the end of March 2019.
Sales are expected to be around $10 billion and EBITDA of $1 billion.
The merger of Endeavour Drinks and ALH is expected to complete in the second half of calendar year 2019, subject to final board approval, third party consents, regulatory approval and completion of the restructure. ✷
✷ SEE STORY OPPOSITE. www.foodanddrinkbusiness.com.au | August 2019 | Food&Drink business | 5