FDBusiness.com

Mondelēz International has agreed to sell most of its grocery business in Australia and New Zealand to Bega Cheese for A$460 million. The transaction adds the iconic VEGEMITE brand and other well-established 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.

“We’re extremely proud of our history as the custodian of the VEGEMITE brand for over 90 years, transforming it from its local roots into a global icon that’s synonymous with Australia,” says Amanda Banfield, vice president Australia, New Zealand and Japan for Mondelēz International. “It’s been a privilege stewarding this brand, which is found in almost every Australian household and is part of the fabric of the nation. 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.”

Included in the sale are Mondelēz International owned brands –VEGEMITE, ZoOsh, Bonox – and other products that use the Kraft brand under license, such as peanut butter, nut spreads, processed cheese slices, ambient cheese spread, mayonnaise and parmesan cheese. Bega will receive a license to the Dairylea brand for use in Australia and New Zealand. The Philadelphia business is not included in the deal as it is a Mondelēz International Power Brand.

The Port Melbourne manufacturing site will transfer to Bega as part of the agreement. The transaction is expected to close in the coming months.