Orkla announced the Nordic food group has signed an agreement to sell its Indian sauces and ready-meals brand SaritaS to the original founders of the product line.
The agreement, which has been taken to “simplify the [Orkla’s] portfolio and concentrate on selected priority areas”, is with the newly-established company Indian Gourmet, located in Orkla’s home country of Norway. The deal, for which financial details were not disclosed, is expected to take effect from 2 March, according to a statement.
Go deeper with GlobalData
Indian Gourmet is equally owned in a 50-50 split between the private companies Taste of India and Janton.
The SaritaS brand was created by Sarita Sehjpal and Raj Sharma, who also own Indian Gourmet. Orkla said the product line came under its ownership through the acquisitions of Rieber & Son in 2013, after that entity bought the brand from Sehjpal and Sharma in 2012.
Under Oslo-listed Orkla’s stewardship, net sales revenues from SaritaS totalled around NOK20m (US$2.1m) in 2019, the company said.
Paul Jordahl, the chief executive of Orkla Foods Norway, said: “Sarita and Raj have played a unique role in developing the culture of Indian food in Norway, and we are delighted that they will continue to build the SaritaS brand in partnership with Janton.”
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataOrkla’s strategy to date has largely rested on M&A, with a number of deals instigated over the last couple of years, many in the ingredients part of the business, and that has continued under newly-installed CEO Jaan Ivar Semlitsch.
While the company’s current portfolio is extensive, stretching across bakery, cereals, spices, meals, snacks and pizza supplied to the retail and foodservice channels, its operations are predominately centred on local brands in Norway, Sweden, Denmark, and Finland, where it is up against rising competition from private label.
Last October, Semlitsch created a project to strengthen the Nordic food group’s competitiveness, saying at the time: “I have initiated a project to ensure that we have the optimal organisational structure for increasing organic growth and reducing complexity. I also want to have a clearer M&A agenda. I therefore want to strengthen the business areas and define clear roles for the group’s support functions.”
See just-food’s analysis here: Orkla’s new CEO has foot on right pedal but still early days
