Cadbury owner pledges fresh investment after £277m deal
Cadbury owner Mondelēz International has said a large disposal deal will pave the way for investment into the Birmingham confectioner.
The US-owned Kraft subsidiary has reached an agreement to sell most of its grocery business in Australia and New Zealand to Bega Cheese in a deal worth £277m ($460m AUD).
The transaction adds the Vegemite brand and other well-established antipodean grocery brands to Bega’s portfolio.
“The move enables Mondelēz International to further focus its portfolio and drive profitable growth by investing in its core snacks categories and Power Brands, including Cadbury Dairy Milk chocolate and Oreo biscuits,” said the firm in a statement.
Exactly what the investment will be has not been disclosed but it will be welcome news to the Bournville operation.
Amanda Banfield, Vice President Australia, New Zealand and Japan for Mondelēz International, said: “As we continue to execute our strategic growth plan, with a keen focus on core snacks categories and global Power Brands, we’re excited to see Vegemite and these much-loved brands continue to grow and thrive under Bega’s ownership.”
The deal follows a move last year in which Mondelēz pledged to invest $400m in securing Fairtrade cocoa for use in Cadbury products globally.
It said that starting in the UK abd Ireland in May 2017, with a phased roll-out, Cocoa Life – an industry leading sustainable cocoa farming programme – would be extended across Cadbury chocolate brands in key markets across the world.
Cocoa Life puts farmers first and aims to empower current and future generations to create thriving farms which boost the entire community. Cocoa Life will benefit 200,000 farmers and one million people in communities in Ghana, Cote d’Ivoire, Indonesia, the Dominican Republic, India and Brazil.
Mondelēz said it scaled up the global roll-out of Cadbury’s products, Cocoa Life would benefit more farmers and communities in cocoa-growing areas.
Fairtrade, the world’s largest and most recognised fair trade system, will become a partner for the whole Cocoa Life programme, working to secure the long-term future of cocoa farming communities.
As part of the global roll out of Cocoa Life across Cadbury brands, the Cocoa Life logo will be carried on the front of all packs during 2018.
Glenn Caton, President, Northern Europe at Mondelēz International, said: “Cocoa Life builds from Cadbury’s proud heritage of sourcing cocoa sustainably, which dates back to a hundred years ago when the Cadbury family helped establish cocoa farming in Ghana.”
Mondelēz International will release its fourth quarter and full-year 2016 financial results on Tuesday, February 7.
