July’s top news stories

PepsiCo aquires South Africa’s Pioneer Foods in $1.7bn deal

PepsiCo agreed to acquire all outstanding shares of South African food and beverage producer Pioneer Foods Group in a deal valued at $1.7bn.

As per the agreement, PepsiCo will pay R110 for each Pioneer share, which represents a premium of 56% of the share price measured over the last month.

Pioneer Foods sells cereals, juices and other snacks under brands such as Weet-Bix, Liqui-Fruit and Ceres.

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KKR to buy Campbell Soup’s Australian unit Arnott’s for $2.2bn

American private equity firm KKR has agreed to acquire Campbell Soup’s Australian business Arnott’s in a deal reportedly valued at $2.2bn.

Citing anonymous sources, The Australian Financial Review newspaper reported that the company’s popular biscuits brand Tim-Tams is also part of the deal.

Snacks business Arnott’s is the biggest single brand in Cambell’s international portfolio, generating $737m annual revenue.

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Nestlé Indonesia to expand three facilities with $100m investment

Nestlé Indonesia announced plans to expand its three facilities located in Karawang (West Java), Kejayan (East Java) and Panjang (Lampung) with an investment of $100m.

The investment will enable the company to enhance production capacity by 25%, as well as promote upcoming products in Indonesia, such as Bear Brand, Milo and Maggi.

Nestlé Indonesia president director Dharnesh Gordhon said: “Producing value-added products has been one of our efforts to enhance the quality of life and continue to contribute to a healthier future for Indonesians.

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Orkla Food Ingredients acquires Confection by Design

Through its wholly-owned subsidiary NIC Enterprises, Orkla Food Ingredients acquired UK-based manufacturer of speciality fudge and toffee, Confection by Design.

Financial details of the transaction have not been disclosed.

Confection by Design provides fudge and toffee to ice cream manufacturers, confectioners and bakeries.

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UK food supplier Good Food Chain goes into liquidation

UK-based food products supplier Good Food Chain (GFC) went into liquidation, despite being cleared in an investigation into the recent listeria outbreak.

The Staffordshire-based company, founded by Martyn Corfield in 1996, voluntarily suspended production operations on 5 June following the deaths of five hospital patients due to the alleged consumption of listeria-contaminated pre-packed sandwiches that were produced by the company.

However, the UK’s Food Standards Agency (FSA) stated on 26 June that the company was not the source of the outbreak and subsequently was cleared by the multi-agency inquiry.

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JBT and SafeTraces partner to advance food traceability

Technology solutions provider JBT collaborated with SafeTraces to improve food safety and traceability with new technology.

Under the partnership, SafeTraces’ patented DNA-based technologies will be integrated into JBT’s solutions portfolio for worldwide distribution.

The integrated solutions will allow for quick verification of sanitation processes, item-level tracking and tracing of food materials.

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Royal DSM introduces new series of cheese culture

Dutch life and materials sciences firm Royal DSM launched a new range of phage robust cultures for young cheddar and barrel cheese.

Dubbed Delvo Cheese CH-120, the series of cheese cultures is designed to increase production efficieny.

It will also help cheese producers to deliver consistent quality, taste and texture, even during long production runs, the company claimed.

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2 Sisters Food Group confirms closure of chicken factory in Essex, UK

2 Sisters Food Group announced the closure of its chicken factory in Witham, Essex, a move that led to more than 400 jobs being cut.

According to the company, it was not able to find an alternative to closing the factory.

The facility employed 528. Around 100 employees have been transferred to facilities in the Eastern region.

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Jasper Wyman & Son to receive funding for fruit processing expansion

The Government of Canada agreed to provide funding to support wild blueberries supplier Jasper Wyman & Son Canada to expand its fruit processing capabilities.

Jasper Wyman & Son Canada will receive C$971,000 ($737,115), which will be used to install new sorting equipment that removes up to 99% of defective berries.

The funding has been offered to the company under the Canadian Agricultural Partnership’s AgriInnovate Programme.

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TreeHouse Foods agrees to sell snacks division to Atlas Holdings

US-based packaged foods manufacturer TreeHouse Foods entered a definitive agreement to sell its snacks division to Atlas Holdings.

Atlas agreed to pay $90m, subject to certain post-closing adjustments.

TreeHouse Foods president and CEO Steve Oakland said: “The sale of the snacks division is a key step in optimising TreeHouse’s overall product portfolio.  It is the culmination of TreeHouse’s strategic review of its snacks business.