UK – Sonae Food4Future, a subsidiary of Portugal-based Sonae, is expanding its international footprint with the acquisition of Claybell, the owner of vegan and free-from brand Gosh! Food.
According to a report by FoodBev, Sonae spent around £64 million (about US$89 million) for a 95.4% stake in the UK food company.
UK-based Gosh! Food portfolio includes a range of vegan and free-from products, including bites, sausages, and burgers, both sold through the Gosh! Brand.
The company is also a private label partner to customers in the retail and foodservice channels. For the fiscal year ending May 2021, the company reported a normalised turnover of £22 million (about US$31m).
Following the acquisition, Gosh! will continue to be managed by the current team, who will hold the remaining 4.6% minority stake in the company’s share capital.
The deal is said to align with Sonae’s strategic focus on innovative companies operating in growth sectors around its core business.
Sonae’s investment in the ‘high-potential’ natural and plant-based food industry also supports its aim to expand its international footprint.
Kellog invests in Supply Chain optimization
Meanwhile, American multinational food manufacturing company Kellogg has announced plans to invest upwards of US$45 million in optimizing its supply chain network across North America.
According to the company, the reorganisation plan involves shifting production of various products to optimal lines across the supply chain network, although no production facilities are set to close as a result.
The overall project is set to be fundamentally completed by early 2024, with estimated cumulative pre-tax charges of approximately US$45 million and an approximate cash cost of US$25 million.
Kellogg says it is setting aside US$4 million to cover any employee-related costs, including severance and other termination benefits.
Some 200 employees at its global headquarters in Battle Creek, Michigan are expected to lose their jobs once the supply chain optimization program commences.
As a result, 174 full-time and 38 salaried positions will disappear by the end of 2023, according to a notice that Kellogg gave its union employees on Sept. 3.
It is however not clear how the layoffs will break down between corporate headquarters and a cereal production plant in Battle Creek.
Kellogg cast this as a necessary move to bring efficiencies to its supply chain, in the wake of lapses that have led to orders going unfilled.
“In our ongoing analysis of our RTEC [ready-to-eat cereal] network, it’s clear that some locations are more cost-effective and better performing than others,” a company spokesperson said.
Kellog expects productivity improvements from the optimization process to commence in 2023.
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