Suntory to commence sale process of Cerebos' Food & Instant Coffee Business
19 April 2017
• Sale process to include Food & Instant Coffee business in Australia & New Zealand and Asian Home Gourmet in Singapore
• Suntory to retain Fresh Coffee business – a strong complement to parent Suntory’s global beverage business. New business unit to focus on capturing larger share of the growing global fresh coffee market
• Sale process expected to take 6-9 months
Cerebos Australia and Cerebos Gregg’s New Zealand (“Cerebos”) today announced that following a strategic review with parent company Suntory Beverage & Food Ltd (“SBF”), it will commence a process which may lead to the sale of its Food & Instant Coffee business in Australia, New Zealand and Asian Home Gourmet in Singapore.
SBF will retain the Fresh Coffee business which will form part of a new business unit focused on capturing a larger share of the rapidly growing global fresh coffee market. Terry Svenson, the current CEO of Cerebos Australia/New Zealand will lead the new Fresh Coffee business as CEO.
Cerebos is owned by SBF, a global soft drink company with consolidated net sales of approximately 1.4 trillion yen in 2016 which is headquartered in Japan and listed on the Tokyo Stock Exchange.
Mr Svenson said SBF’s core focus was on the beverage category which led to the decision to commence a sale of the Food & Instant Coffee business.
“Cerebos’ fresh coffee brands are a strong complement to SBF’s existing beverage portfolio globally. SBF remains committed to investing in fresh coffee to capitalise on our market leading positions to grow the business further,” he said.
“Cerebos’ Food & Instant Coffee business has a number of market-leading brands across Australia and New Zealand. While we have made great progress in recent years, including significant improvements to the efficiency of our manufacturing operations, food and instant coffee are not a core category focus for SBF and growth opportunities can potentially be maximised under different ownership.”
Cerebos operates one food manufacturing facility in Sydney and an instant coffee operation in New Zealand. The Food & Instant Coffee business includes some of the most iconic food brands in Australia and New Zealand such as Fountain, Gravox, Saxa, Foster Clark’s, Gregg’s, Bisto, Raro and Asian Home Gourmet across a number of categories including sauces, gravies, herbs & spices, salt, condiments, Asian sauces, desserts and cooking ingredients.
Mr Svenson said the sale process of the Food & Instant Coffee business is expected to take 6-9 months.
“In the meantime, it’s business as usual for our people, our customers and our consumers with no
change to our day-to-day operations.
“We will continue to advise our key stakeholders of updates during the process,” he said.
These changes do not impact on SBF’s other businesses in Australia and New Zealand.
UBS AG has been appointed as financial adviser.
For further information:
Capital Markets Communications
Tel. 0403 332 977
Notes to editors
Cerebos, which includes Cerebos (Australia) Limited and Cerebos Gregg’s Limited New Zealand is a
leading trans-Tasman grocery business. The company is well known for many top selling food, sauce
and coffee brands.
Its parent company is Cerebos Pacific Limited, is based in Singapore and is owned by Suntory Beverage
& Food Asia, part of the Suntory Group in Japan.
About Suntory Beverage & Food
Suntory Beverage & Food Ltd (SBF) is a global soft drink company with consolidated net sales of
approx. 1.4 trillion yen in 2016.
Headquartered in Japan and listed on the Tokyo Stock Exchange since 2013, SBF is expanding its business with a diverse portfolio of soft drinks and globally integrated platform in five key regions: Japan, Europe, Asia, Oceania and the Americas.
SBF’s vision is to be the leading global soft drink company recognized for its premium and unique
SBF is a core company of Suntory Group, which was founded in 1899 with consolidated net sales of approx. 2.6 trillion yen in 2016.
For further information please visit http://www.suntory.com/softdrink/index.html