Sector News

PepsiCo offers to acquire Pioneer Foods, targets African growth

July 19, 2019
Food & Drink

PepsiCo announced today that it has entered into an agreement to acquire all the outstanding shares of South African food and beverage company Pioneer Foods Group for approximately $1.7 billion. This will be the PepsiCo’s biggest deal outside of the US to date.

Pioneer Foods’ product portfolio complements PepsiCo’s current lineup, with strong positions in cereals, juices, and other African nutritional food staples, including well-known brands like Weet-Bix, Liqui-Fruit, Ceres, Sasko, Safari, Spekko, and White Star.

PepsiCo expects the acquisition to provide a solid position from which to expand into Sub-Saharan Africa.

This transaction creates a leading food and beverage company in Africa, led from South Africa, with a commitment to supporting sustainability and local suppliers. As part of this goal, PepsiCo will create a new operating sector for Sub-Saharan Africa, named PepsiCo SSA. The sector will be led by Eugene Willemsen, who most recently served as executive vice president of global categories and franchise management. Willemsen, who has been with PepsiCo for nearly 25 years, has extensive experience in growth markets, having previously led the company’s businesses in Turkey and South East Europe. This new structure will not impact PepsiCo’s reporting structure, and PepsiCo SSA will remain part of Europe Sub-Saharan Africa (ESSA) from a financial reporting perspective.

The acquisition will be funded through a combination of debt and cash, and is subject to a Pioneer Foods shareholder vote, certain regulatory approvals, and other customary conditions. The transaction is expected to close by Q1 calendar year 2020.

By Bryony Andrews

Source: FoodBev

comments closed

Related News

January 29, 2023

Danone appoints three new deputy CEOs

Food & Drink

Danone has appointed three deputy CEOs to “better connect categories and regions” and drive the delivery of its ‘Renew Danone’ strategy. The new appointees are Veronique Penchienati-Bosetta, Shane Grant and Juergen Esser. They will report to Danone CEO Antoine de Saint-Affrique.

January 29, 2023

PepsiCo Portugal invests €7.5m in biodigester

Food & Drink

PepsiCo Portugal has announced that it will invest €7.5 million to construct a new biodigester, which will turn organic waste into biogas. As well as helping its Carregado facility to achieve a 30% reduction in carbon emissions, the biodigester will also contribute to reducing gas consumption, allowing the installation to use the biogas produced during the anaerobic digestion process.

January 29, 2023

Kerry’s fellowship with Upcycled Food Foundation explores future of food waste prevention

Food & Drink

Kerry is sponsoring The Kerry Upcycled Food Foundation Fellowship in a new partnership with the Upcycled Food Foundation (UFF), the non-profit subsidiary of the Upcycled Food Association (UFA). The research fellowship is the second initiated by the UFF and will work toward advancing the understanding of the market, consumer perception and technical opportunities of upcycled food.

How can we help you?

We're easy to reach