Deal approved without restrictions by CADE, Brazil’s antitrust body; acquisition accelerates Taste Elevation strategy in a priority growth market for Kraft Heinz
The Kraft Heinz Company (Nasdaq: KHC) (“Kraft Heinz”), the owner of the Heinz and Quero brands in Brazil, announced today that it completed its acquisition of a majority stake in Companhia Hemmer Indústria e Comércio (“Hemmer”), a Brazilian food company focused on condiments and sauces, after the deal was approved without restriction by CADE (Brazil’s Administrative Council for Economic Defense), Brazil’s antitrust body. The proposed deal was announced in September 2021, and CADE was notified in November 2021.
The association with Hemmer, a 107-year-old company based in Blumenau, Santa Catarina, will expand Kraft Heinz's International Taste Elevation platform with its focus on condiments and sauces and will also support its strategy to increase its presence in emerging markets.
The acquisition aims to accelerate the growth of both companies, whose brands and portfolios are complementary. Hemmer will also benefit from Kraft Heinz's distribution network and go-to-market model in Brazil, including in the growing foodservice channel.
"This is an important move for our International growth strategy, which is focused on Taste Elevation, our portfolio of high-quality, delicious products that enhance the taste of food," says Rafael Oliveira, EVP & President, International Markets at Kraft Heinz.
"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,” said Fernando Rosa, Managing Director of Brazil at Kraft Heinz. “This combination represents a tremendous growth opportunity for both companies, which are both built on the pillars of tradition, innovation, quality, superior ingredients, and flavor.”
ABOUT THE KRAFT HEINZ COMPANY
We are driving transformation at The Kraft Heinz Company (Nasdaq: KHC), inspired by our Purpose, Let's Make Life Delicious. Consumers are at the center of everything we do. With 2021 net sales of approximately $26 billion, we are committed to growing our iconic and emerging food and beverage brands on a global scale. We leverage our scale and agility to unleash the full power of Kraft Heinz across a portfolio of six consumer-driven product platforms. As global citizens, we're dedicated to making a sustainable, ethical impact while helping feed the world in healthy, responsible ways. Learn more about our journey by visiting www.kraftheinzcompany.com or following us on LinkedIn and Twitter.
Companhia Hemmer Indústria e Comércio (Hemmer) is a 100% Brazilian company based in Blumenau, Santa Catarina State, which was founded in 1915 and produces and markets various canned foods, condiments, olive oils, and beverages. Its longevity, unusual in the Brazilian scenario, and its strength are a consequence of the quality of products offered to consumers and the seriousness and dedication invested in the work. The company's goal is to be present in the daily lives of families, transforming affection and dedication into tasty, quality foods, standing apart from other food companies for its varied production portfolio, and the products offered under our brand made by partner companies.
This press release contains a number of forward-looking statements. Words such as “accelerate,” “expand,” “focus,” “support,” “aim,” “plan,” “become,” “will,” and variations of such words and similar future or conditional expressions are intended to identify forward-looking statements. These statements include, but are not limited to, expected benefits of the acquisition, impacts of the acquisition on Kraft Heinz’s business, financial results, opportunities, and future plans, and other statements that are not historical facts, each of which is based on Kraft Heinz’s current beliefs, expectations, estimates, and projections. These forward-looking statements are subject to a number of risks and uncertainties, many of which are difficult to predict and beyond Kraft Heinz’s control, which could cause actual results to differ materially from those indicated in the forward-looking statements. Those factors include, but are not limited to, Kraft Heinz’s ability to achieve intended benefits of the acquisition, the expected costs of the transaction, the success of business transitions, and the risk factors set forth in Kraft Heinz’s filings with the Securities and Exchange Commission, including Kraft Heinz’s most recently filed Annual Report on Form 10-K and subsequent reports on Forms 10-Q and 8-K. Kraft Heinz disclaims and does not undertake any obligation to update, revise, or withdraw any forward-looking statement in this press release, except as required by applicable law or regulation.