Kraft Heinz expands Brazil presence with acquisition of condiments & sauces brand Hemmer

BRAZIL – American multinational food company The Kraft Heinz Company is bolstering its presence in Brazil through the acquisition of a majority stake in Companhia Hemmer Indústria e Comércio (Hemmer).

Hemmer is a 107-year-old Brazilian food company focused on condiments and sauces. The company based in Blumenau, Santa Catarina, Brazil reported net sales of approximately US$26 billion in 2021.

The deal first announced in September 2021 has received approval without restriction by CADE (Brazil’s Administrative Council for Economic Defense), Brazil’s antitrust body.

Kraft Heinz touts the brands and portfolios of both companies as complementary adding that Hemmer will benefit from its distribution network and go-to-market model in Brazil, including in the growing food service channel.

Rafael Oliveira, president of International Markets at Kraft Heinz, remarks: “This is an important move for our International growth strategy, which is focused on Taste Elevation, our portfolio of high-quality, delicious products that enhance the taste of food.”

“This combination represents a tremendous growth opportunity for both companies, which are both built on the pillars of tradition, innovation, quality ingredients and flavor,” adds  Fernando Rosa, managing director of Brazil, Kraft Heinz.

Kraft Heinz recently consolidated its US and Canada businesses last December to create the “North America Zone,” which is expected to take effect in this second quarter of fiscal 2022.

These two accounted for approximately 80% of the food titan’s 2020 consolidated net sales, according to figures from the company.

The company also previously joined a coalition of other food giants including Nestlé, Nando’s and Greggs to urge policymakers to legislate the ban of enriched battery cages for egg-laying hens.

Many egg producers have already agreed to remove cage egg production from their supply chain by 2025 but concede that more can be done.

Among other developments, Heinz teamed up with astrobiologists in November to successfully cultivate tomatoes in space-like conditions for their ketch-up.

Recently, Kraft Heinz said it will announce “a substantial virgin plastic reduction commitment” no later than Q1 of next year.

The agreement comes after shareholders came to the nonprofit advocacy with concerns the food and beverage giant was not taking sufficient action to reduce plastic packaging. 

The corporation aims to make 100% of its packaging reusable, recyclable, and or compostable by 2025 as well as increase recycled content.

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