Sign up for the Powder & Bulk Solids Weekly newsletter.
Kraft Heinz to Shed Natural Cheese Business in Canada
November 8, 2018
2 Min Read
Milan, Italy-based food firm Parmalot will take on The Kraft Heinz Company’s natural cheese business in Canada, including the Cracker Barrel, P’tit Quebec and aMOOza! brands, in a $1.23 billion transaction, the companies announced in separate press releases Tuesday.
Under the terms of the sale, Parmalot will take possession of Kraft’s Ingleside, ON plant and some 400 existing workers will be transferred to the new owner.
“We’re excited about what this transaction means to our future growth and business in Canada,” Kraft Heinz Chief Executive Officer Bernardo Hees said in a statement. “We also believe Parmalat is uniquely positioned to advance the natural cheese business given their experience and focus on the dairy industry. At the same time, we can focus on the segments and categories where we have stronger brand equity, competitive advantage and greater growth prospects.”
The natural cheese business generated about $427 million in net sales last year. A Parmalot press release said the transaction enables the Italian firm to expand its business in Canada, particularly Quebec, where the company has a minimal presence.
Kraft plans to continue producing Philadelphia, Cheez Whiz, and Kraft Singles products at a Mount Royal, QC manufacturing facility.
Following regulatory approvals and the satisfaction of other closing conditions, the firms said they expect the deal to close in the first half of next year.
For more news headlines, articles, and equipment reviews, visit our Equipment Zones
You May Also Like
Martin Engineering Opens New Italian HQFeb 23, 2024|2 Min Read
FDA Expands Cotija Cheese RecallFeb 23, 2024|2 Min Read
Training & Development of Staff Post-Pandemic is More Important Than EverFeb 23, 2024|3 Min Read
Röhm Builds New Plant for PLEXIGLAS Molding CompoundsFeb 23, 2024|2 Min Read