Bega Cheese buys back Vegemite
Good news for Vegemite lovers: Bega Cheese has announced it’s bring the brand back to Australia.
Bega Cheese has announced it is buying vegemite and a host of other brands from Mondelez International’s Australia and New Zealand grocery and cheese business for $460 million.
Investors welcomed the news, sending Bega Cheese shares soaring more than 15 per cent to $5.16 on the news.
Mondelez is a spin-off of KRAFT’s North American operations.
Bega Cheese’s executive chairman Barry Irvin said: “The wonderful heritage and values that Vegemite represents and its importance to Australian culture makes its combination with Bega Cheese truly exciting.”
Other brands picked up in the sale include Bonox and ZoOSh and other products using the KRAFT brand under licence for products such as peanut butter, nut spreads, processed cheese slices, ambient cheese spread, mayonnaise, parmesan cheese, KRAFT Easy Mac and KRAFT Mac & Cheese.
The deal will be good for Bega shareholders.
Bega Cheese says it will boost earnings a share from the first full year of operation.
Bega Cheese expects revenue to run at $310 million a year.
Gross profit, as measured by earnings before interest, tax, depreciation and amortisation is expected to come out at $40-45 million in the first full year.
by Leon Gettler, January 20th 2017
