The proposed deal was announced in September, and Brazil's antitrust body CADE approved the deal without restrictions.
Founded in 1915, Brazilian Hemmer produces and markets various beverages, canned foods, condiments, and olive oils. Kraft Heinz says Hemmer will become part of its International Taste Elevation platform with a focus on condiments and sauces, and will support its strategy to increase its presence in emerging markets.
In 2021, Hemmer reported net sales of approximately US$26 billion.
Fernando Rosa, managing director of Brazil, Kraft Heinz says that this deal represents a tremendous growth opportunity for both companies.
“We are very excited about the completion of the deal, which furthers Kraft Heinz’s plan to become one of the largest food players in the country, expanding our selection for our consumers”.
He also notices that Hemmer will benefit from Kraft Heinz’s distribution network and go-to-market model in Brazil, including in the growing foodservice channel.
Kraft Heinz recently consolidated its US and Canada businesses last December to create the “North America Zone”, which is expected to take effect in this second quarter of fiscal 2022. These two accounted for approximately 80% of the food titan’s 2020 consolidated net sales.
The company also previously joined a coalition of other food giants including Nestlé, Nando’s and Greggs to urge policymakers to legislate the ban of enriched battery cages for egg-laying hens. Inside these cages, the hens were forced to stay in conditions of severe discomfort, without the opportunity to exhibit their natural behavior. Many egg producers have already agreed to remove cage egg production from their supply chain by 2025 but concede that more can be done.
Source: FIESC, Food Ingredients
