Kraft Heinz to expand presence in Brazil’s condiments and sauce market with acquisition of Hemmer

BRAZIL – American food company Kraft Heinz has signed an agreement to acquire Brazilian food producer Companhia Hemmer Indústria e Comércio (Hemmer) for an undisclosed sum. 

Headquartered in Blumenau, Santa Catarina, Brazil, Hemmer has a reach history spanning over 106 years and primarily offers condiments and sauces.  

The deal which is subject to regulatory approvals by CADE (Brazil’s Administrative Council for Economic Defense) will see Kraft Heinz acquire more than 250 “meal-enhancing” offerings.  

According to Kraft, these offerings will support its strategy of accelerating its international ‘taste elevation’ product platform and growing its presence in emerging markets. 

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“This acquisition offers us a valuable opportunity to accelerate our international growth strategy centred around ‘taste elevation’ – our portfolio of high-quality products that enhance the taste of food,” said Kraft Heinz’s international zone president, Rafael Oliveira.  

“Hemmer is a legendary company in Brazil, growing net sales significantly, and will bring a delicious and diverse portfolio of products to Kraft Heinz.” 

Both companies are expected to benefit from the acquisition. Kraft Heinz is looking to grow its presence in Brazil and build on its expansion in condiments and sauces. 

Hemmer is, on the other hand, expected to benefit from Kraft Heinz’s distribution network and “go-to-market model”, which includes the growing foodservice channel in the country. 

Hemmer’s CEO, Christian Luef, added: “In the last few years, Hemmer has been further strengthening itself as a food company synonymous with flavour, quality and portfolio variety”.  

He continued: “We are extremely honoured by this potential acquisition and the entire expansion potential this negotiation offers by continuing our family history in the region”. 

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Expansion in Latin America will benefit Kraft Heinz’s bottom line as the division among other emerging markets has been delivering higher single-digit growth while momentum slows down in developed markets.  

Sales were up nearly 8% in the first half of this fiscal year, and Kraft Heinz chief executive officer Miguel Patricio, expects this region to continue bolstering Kraft Heinz Co. financial results for another five years. 

Emerging markets represent about 10% of Kraft Heinz net sales, but they offer “great potential and a great momentum”. Investments such as Hemmer will thus prove crucial in achieving this kind of growth moving forward.  

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