Bega acquires Vegemite for $460 million; Bega to welcome over 200 employees into its business

Bega-Cheese.jpgBega Cheese Limited has today announced it has reached agreement to buy Mondelēz International's Australia and New Zealand grocery and cheese business (MDLZ Grocery Business) and with it some of Australia's most iconic brands.

The sale includes brands such as Vegemite, ZoOsh and Bonox - and other products using the Kraft brand under license for items such as peanut butter, nut spreads, processed cheese slices, ambient cheese spread, latest.jpgmayonnaise, parmesan cheese, Kraft Easy Mac and Kraft Mac & Cheese. It also includes the Port Melbourne site. Bega will also receive a license to the Dairylea brand for use in Australia and New Zealand.  Philadelphia is not included in the deal.

The company will pay AU$460 million for the business and the acquisition is said to be the next step in the Bega evolution towards becoming a great branded Australian food company.
The executive chairman of Bega Cheese, Barry Irvin said he was incredibly proud that an Australian company, that has transformed itself from a dairy farmer co-operative into a major ASX listed billion-dollar business, is today acquiring the iconic and culturally significant brand Vegemite.

Says Irvin: "The wonderful heritage and values that Vegemite represents and its importance to Australian culture makes its combination with Bega Cheese truly exciting. Bega is a company with humble origins and to be in a position to be able to take on a business of this scale and with brands including Vegemite is a testament to how far we have come."

Says Amanda Banfield, vice president Australia, New Zealand and Japan for Mondelēz International: "It's been an absolute honour and privilege to have nurtured brands such as Vegemite for the past 90 years. But as we further our focus on core snacking categories and global Power Brands, the time is right for these brands to take the next step in their journey. We are pleased to have found a home for these talented people and grocery brands in a company that shares our passion for their future."

Says Irvin: "We feel honoured to be bringing these businesses together and to be taking on the responsibility and guardianship of one of Australia's most loved brands and we look forward to welcoming over 200 talented people into our business as part of this acquisition. This purchase represents an exciting opportunity bringing the MDLZ Grocery Business under the ownership of a high quality much loved Australian company, Bega."

4 Comments

Something to feel good about. said:

Well, the previous owner was Phillip Morris...So it's gotta be good regardless.
Hands down, Mondelez were the most ineffectual, dithering, fearful and consesnsu-driven group of marketers I've ever had anything to do with.
The brands will inevitably be in better hands.
Go Bega. The brands - especially Vegemite - have long deserved better.

Vegemite kid said:

Makes my vegemite and cheese melts taste even better! Good to see an iconic brand back in the hands of a great Aussie company.

pseudonym said:

pitch.

Biznass not creativity said:

Are they doing an ad about the acquisition?
Why do we care?

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