Orkla to acquire PepsiCo’s breakfast cereal brand Havrefras

Norwegian branded consumer goods supplier Orkla has signed and closed an agreement to acquire breakfast cereal brand Havrefras from PepsiCo.

The agreement was completed through its subsidiary Orkla Foods Sverige. Financial details of the deal have not been revealed by either company.

Havrefras was launched in the market in 1959 and became part of PepsiCo after the food and drink manufacturer acquired The Quaker Oats Company in 2001.

Orkla president and CEO Jaan Ivar Semlitsch said: “Orkla is well known for its strong, local brands, and the acquisition of Havrefras is strategically appropriate for strengthening our position as leading branded consumer goods supplier.

“All the Havrefras products bear the Green Keyhole healthy food label and thus contribute to achieving Orkla’s goal of making everyday food healthier.”

The acquisition does not include any employees or production facilities.

As part of the acquisition, Orkla will be acquiring Havrefras brands, including Rug Fras and Mini Fras. It has a strong presence in Scandinavia’s healthy breakfast cereals market.

Orkla Foods (Nordics and Baltics) executive vice-president and CEO Ann-Beth Freuchen said: “Orkla holds a leading position in the Scandinavian grocery trade in a number of attractive categories.

“By acquiring Havrefras, we have strengthened our portfolio with a well-known brand that is a great addition to our other breakfast products.”

Orkla said that it will continue to distribute PepsiCo’s Tropicana, Naked, Cruesli, Snack a Jacks, Doritos, Lay’s and Bugles brands in the Nordic region.

Last August, Orkla signed an agreement to acquire a 20% stake in Icelandic chocolate and confectionery manufacturer Nói-Siríus.