Kraft Heinz to buy Turkey sauces firm Assan Foods

The US giant has snapped up one of its co-manufacturers.

 

Kraft Heinz has acquired Assan Foods, a Turkey-based condiments supplier that has been one of the US giant’s co-manufacturers.

Assan Foods, set up in 1998, has worked with Kraft Heinz for two years. From two factories, the company manufactures products including ketchup and mayonnaise, as well as pasta and meat sauces.

The business, which was part of the Turkish conglomerate Kibar Holding, markets products under brands such as Colorado, Kingtom and Oba, as well as offering a private-label service.

Kraft Heinz believes the acquisition will help it build its retail and foodservice businesses “across Europe, the Middle East and Africa”. Assan Foods, it said, exports to around 50 markets.

Rafael Oliveira, president of Kraft Heinz’s international division, described Assan Foods as “a high-performance organisation that brings best-in-class local innovation and production”.

Oliveira said the Istanbul-based company also has a “significant distribution network” in the foodservice channel.

Financial terms were not disclosed.

Assan Foods’ factories are in Balikesir in north-western Turkey and in Izmir, more than 120 miles further south. It employs 400 staff.

The deal, which Kraft Heinz expects to complete in the second half of the year, is the first full acquisition since Miguel Patricio was hired as CEO in 2019.

The ketchup, soup and baked-beans manufacturer has made minor investments in fledgling firms.

However, the accent of Kraft Heinz’s M&A activity in recent years has focused on disposals as Patricio sought to re-shape the business and pay down debts.

Earlier this year, the company sold its Planters snacks business to US peer Hormel Foods.

Last September, Kraft Heinz sold a clutch of cheese assets to French dairy group Lactalis.

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Tyson Foods goes for net-zero under new sustainability agenda

US meat giant Tyson Foods has laid down a new greenhouse gas emissions target.

 

 

Tyson Foods has outlined plans to achieve net-zero greenhouse gas emissions by 2050 in an update to its previous reduction target.

The meat-processing giant said today (9 June) the commitment underscores its efforts to “combat the urgency of the growing climate-change crisis”. It added the 2050 target includes emissions under scopes one to three.

“Achieving net-zero emissions is a large undertaking which will look at emissions tied to direct global operations, energy sources and throughout the company’s supply chain,” Tyson said in a statement.

The company said its previous commitment was to achieve a 30% reduction in emissions by 2030 to align with worldwide efforts to limit global temperature increases to 2℃.

However, Tyson is adjusting its sustainability strategy in accordance with the Paris Agreement to restrict the rise in temperature to 1.5℃ by the end of 2023.

John Tyson, the meat firm’s chief sustainability officer, said: “As the first US-based protein company in the food and beverage sector to have an emissions reduction target approved by the Science Based Targets initiative, we hope to continue to push the industry as a leader and remain committed to making a positive impact on our planet, with our team members, consumers and customers, and in the communities we serve.

“At Tyson Foods, we believe progress requires accountability and transparency and we are proud to exemplify that as we work to achieve net-zero greenhouse gas emissions by 2050.”

Tyson, which last week revealed the departure of its CEO and president Dean Banks, is also “establishing a pathway” to use 50% renewable energy across its US operations by 2030.

Other initiatives within the climate-change agenda include working to increase Tyson’s current target of using five million acres of grazing pasture for sustainably produced beef and continuing to eradicate the deforestation risk across its global supply chain by 2030.

In terms of biodiversity related to land stewardship, Tyson aims to “complete” its initial target to improve environmental practises on two million acres of US farmland by 2025 after it missed the previous 2020 goal laid out three years ago. The land area currently stands at 408,000 acres. A new 100% target land mass has been introduced by 2030.

Donnie King, who supersedes Bank as president and CEO, said: “Our net-zero ambition is another important step in our work toward realising our aspiration to become the most transparent and sustainable food company in the world. Partnership and collaboration will be critical to our efforts, and we look forward to working with our customers, supply chain partners, and other stakeholders to achieve net-zero.”

Flowers Foods moves in for local US peer Koffee Kup Bakery

A rival had said it was the “preferred purchaser” of the closed Koffee Kup Bakery.

US bakery major Flowers Foods has acquired local business Koffee Kup Bakery from a court-appointed receiver.

 

Financial terms were not disclosed in an announcement made at 4.30pm ET yesterday (7 June).

Last month, Canada-based baker Mrs. Dunster reportedly announced it was the “preferred purchaser” of the assets.

Flowers said its acquisition of Koffee Kup Bakery, based in the north-eastern US state of Vermont, includes three closed bakeries and two brands.

“This acquisition brings brands and production capacity in the north east, a key growth market for our company,” Ryals McMullian, Flowers’ president and CEO, said. “The Koffee Kup and Vermont Bread Company brands have a strong consumer following in the region and we’ll be evaluating their role within our brand portfolio.”

McMullian said Flowers would not instantly open the factories but insisted the company is weighing up what to do with the sites. “We have no immediate plans to reopen the bakeries but will be assessing how they may fit our strategic network optimisation efforts in the future.”

Koffee Kup Bakery, set up in 1940, closed in April. The company marketed bread, English muffins, buns and donuts in the north east of the US.

On 28 May, Mrs Dunster’s announced its plans to buy the assets. It said it planned to re-open two of the company’s bakeries in Vermont and sell the third, located in Connecticut.

Koffee Kup Bakery’s closure had been announced a month earlier, with state-government filings showing 247 staff at the two Vermont bakeries had lost their jobs. A Connecticut state filing did not disclose the number of employees who had lost jobs at the third factory.

At the start of April, US investment firm American Industrial Acquisition Corp. acquired Koffee Kup Bakery.

According to a statement from G2 Capital Advisors, which worked with Koffee Kup Bakery on the deal, the baker was “in the process of repositioning its business to capitalise on a compelling platform of established brands, private label partnerships, long-term relationships with blue-chip retailers and a vast distribution network”. By the end of the month, Koffee Kup Bakery was closed.

Just Food has asked American Industrial Acquisition Corp., Flowers and Mrs Dunster’s for further comment.