Kraft Heinz Completes Purchase of Assan Foods, Expanding Presence in Key Growth Markets

Rhea-AI Summary

The Kraft Heinz Company has completed its acquisition of Assan Foods from Kibar Holding, as first announced on June 11, 2021. Based in Istanbul, Assan Foods specializes in sauces and has been a certified production partner since 2019. This acquisition is part of Kraft Heinz's strategy to enhance its growth in the European, Middle Eastern, and African markets, focusing on taste elevation.

Assan Foods, established in 1998, produces a variety of products like ketchup and tomato paste. This deal aims to further expand Kraft Heinz's foodservice and retail businesses.

Positive

• Acquisition of Assan Foods strengthens Kraft Heinz's presence in key international markets.
• Opportunity to expand retail and foodservice businesses in Europe, the Middle East, and Africa.
• Assan Foods' established product range aligns with Kraft Heinz's growth strategy focused on taste elevation.

Negative

• None.

Acquisition Aligns with Kraft Heinz’s International Growth Strategy Focused on Taste Elevation and Foodservice

PITTSBURGH & CHICAGO--(BUSINESS WIRE)-- The Kraft Heinz Company (Nasdaq: KHC) (“Kraft Heinz”) announced today that it has completed the purchase of Assan Foods from privately held Turkish conglomerate Kibar Holding. The proposed deal was first announced on June 11, 2021.

Assan Foods, headquartered in Istanbul, is a rapidly growing sauces-focused business with local manufacturing facilities in Balikesir and Izmir, Turkey. Assan Foods has been a certified Kraft Heinz production partner since 2019 and offers Kraft Heinz the opportunity to further build its retail and foodservice businesses across Europe, the Middle East, and Africa.

“Assan Foods makes high-quality sauces and tomato products that we believe fit perfectly into our International Zone’s growth strategy focused on Taste Elevation, and expands our presence in a part of the world that holds tremendous long-term opportunity for our company and our brands,” said Rafa Oliveira, International Zone President at Kraft Heinz. “We’re excited to officially welcome Assan Foods employees to the Kraft Heinz table.”

Assan Foods was established in Balikesir in 1998 as a Kibar Holding investment in the food sector and evolved into one of the top producers in the region. Assan Foods manufactures and sells a wide range of products, including tomato paste, ketchup, mayonnaise, and pasta and meat sauces that appeal to a variety of international cuisines. Its products are sold under brands such as Colorado, Kingtom, and Oba, as well as private label.

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 2020 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.

Forward-Looking Statements

This press release contains a number of forward-looking statements. Words such as “expand,” “focus,” “grow,” “offer,” “build,” “believe,” “hold,” “expect,” “intend,” “plan,” 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, statements about expected benefits of the proposed purchase, impacts of the proposed purchase 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 purchase, 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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20211004005329/en/

Alex Abraham (media)

alex.abraham@kraftheinz.com

Nigel Dickie, Director, Corporate and Government Affairs, Kraft Heinz EMEA (media)

nigel.dickie@kraftheinz.com

Office phone : +44 20 3765 0570

Mobile : +44 773 657 2909

Christopher Jakubik, CFA (investors)

ir@kraftheinz.com

Source: The Kraft Heinz Company

FAQ

What is the significance of Kraft Heinz's acquisition of Assan Foods?

The acquisition enhances Kraft Heinz's footprint in international markets, aligning with their growth strategy focused on taste elevation.

When was the acquisition of Assan Foods announced?

The acquisition was first announced on June 11, 2021.

What products does Assan Foods produce?

Assan Foods specializes in sauces, including ketchup, tomato paste, and various sauces for international cuisines.

How will this acquisition impact Kraft Heinz's business?

The acquisition is expected to expand Kraft Heinz's foodservice and retail operations in Europe, the Middle East, and Africa.