Mondelēz International has announced plans to sell most of its Australia and New Zealand grocery business - including the iconic Vegemite brand - to Bega Cheese for $460 million.
The purchase returns the Aussie-invented Vegemite spread to local hands after decades of ownership by multinationals.
The deal also places more brands – mostly Kraft products like peanut butter, cheese and mayonnaise - in Bega's business.
Mondelez's Port Melbourne manufacturing site will transfer to Bega as part of the agreement and around 200 Mondelez employees will be offered roles on comparable terms with Bega.
Mondelēz said the move is about focusing on its core snacks categories and 'power brands' such Cadbury Dairy Milk chocolate and Oreo biscuits.
“We’re extremely proud of our history as the custodian of the Vegemite brand for over 90 years, transforming it from its local roots into a global icon that’s synonymous with Australia,” said Mondelēz International vice president Australia, New Zealand and Japan Amanda Banfield.
“It’s been a privilege stewarding this brand, which is found in almost every Australian household and is part of the fabric of the nation.
“As we continue to execute our strategic growth plan, with a keen focus on core snacks categories and global Power Brands, we’re excited to see Vegemite and these much-loved brands continue to grow and thrive under Bega’s ownership.”
Bega Cheese’s Executive Chairman, Barry Irvin said: "We believe these iconic brands alongside the Bega Cheese brand are strong building blocks to enable Bega Cheese to become a great FMCG business."
“The wonderful heritage and values that Vegemite represents and its importance to Australian culture makes its combination with Bega Cheese truly exciting. Bega is a company with humble origins and to be in a position to be able to take on a business of this scale and with brands including Vegemite is a testament to how far we have come."
Other brands included in the sale are ZoOsh, Bonox, and other products that use the Kraft brand under license, such as peanut butter, nut spreads, processed cheese slices, ambient cheese spread, mayonnaise, parmesan cheese, Kraft Easy Mac and Kraft Mac & Cheese.
Bega will also receive a license to the Dairylea brand for use in Australia and New Zealand. Mondelez's Philadelphia business is not included in the deal.
The transaction is expected to close in the coming months.
