View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. News
February 10, 2021

Arnott’s to form cereal, snacks division on back of majority stake in Australia’s Diver Foods

Arnott's Group, the Australian food manufacturer, plans to create a new division after entering an agreement to take a majority stake in a local business.

By Dean Best

Arnott’s Group, the Australian food manufacturer, plans to create a new division for cereals and snacks after entering an agreement to take a majority stake in Diver Foods.

Free Report
img

What’s the forecast for the food and grocery industry?

The food and grocery sector thrived during the pandemic, largely due to the shutdown of the food service industry and the sector’s subsequent necessity, panic-induced bulk purchasing, and spending more time at home. The market has grown as a result of inflation. Consumer unwillingness to go out and socialize, and the reopening of several hospitality facilities, helped maintain the demand for groceries, particularly online, in 2021. As consumer behavior changes, we consume more food and drink at home, and inflation increases basket sizes. GlobalData predicts that the sector will continue to hold a higher share than had been predicted prior to the pandemic. This is true despite the fact that the food and grocery sector's share of overall retail will decline from its peak in 2020. This report will discuss market forecasts and key themes in the global food & grocery industry in 2022 and beyond. It covers:
  • Market drivers and inhibitors
  • Five-year forecasts and the impact of COVID-19
  • The performance of the online channel versus offline
  • Major trends in the market including rapid delivery, ambient retailing, supply chain disruption, and inflation
Assess developments within this sector to help your business thrive in 2022 and beyond.
by GlobalData
Enter your details here to receive your free Report.

Diver Foods, based in Victoria, also produces snacks and cereals. Arnott’s, which is owned by private-equity firm KKR after a deal with Campbell Soup Co. in 2019, is seeking to acquire a 75% interest in the target company, with its managing director and owner Chris Diver to retain a 25% stake in the business.

Financial terms were not disclosed.

Once the deal is completed, expected later this month, Arnott’s will form a new division, Good Food Partners, which will also accommodate the cereals and snacks assets the company agreed to acquire from Australia’s Freedom Foods in December. Arnott’s anticipates that transaction will close in March. 

“The acquisition is part of an ambitious growth strategy that involves entering new product categories,” Arnott’s said in a statement. It currently manufactures biscuits such as the TimTam brand, juices and soups, while Arnott’s also has a licensing agreement to distribute Campbell products in the Asia Pacific.   Arnott’s CEO George Zoghbi said: “The Arnott’s Group has become the custodian of a 150-plus year legacy of Australian food manufacturing and we have made no secret of our desire to build on that legacy by expanding our operations locally. Diver Foods presents a fantastic strategic growth opportunity for us, with products and capability that will complement our existing brands, while helping to diversify our iconic product portfolio and drive our entry into new categories.” 

Diver Foods’ MD Mr. Diver added: “Over the last 18 years, Diver Foods has successfully partnered with an array of leading brands and retailers to become one of Australia’s largest cereal and snacking manufacturers. We see huge potential for the future and are excited at the prospect of joining with a business like the Arnott’s Group that has similar values and strong Australian heritage.”  

Related Companies

Free Report
img

What’s the forecast for the food and grocery industry?

The food and grocery sector thrived during the pandemic, largely due to the shutdown of the food service industry and the sector’s subsequent necessity, panic-induced bulk purchasing, and spending more time at home. The market has grown as a result of inflation. Consumer unwillingness to go out and socialize, and the reopening of several hospitality facilities, helped maintain the demand for groceries, particularly online, in 2021. As consumer behavior changes, we consume more food and drink at home, and inflation increases basket sizes. GlobalData predicts that the sector will continue to hold a higher share than had been predicted prior to the pandemic. This is true despite the fact that the food and grocery sector's share of overall retail will decline from its peak in 2020. This report will discuss market forecasts and key themes in the global food & grocery industry in 2022 and beyond. It covers:
  • Market drivers and inhibitors
  • Five-year forecasts and the impact of COVID-19
  • The performance of the online channel versus offline
  • Major trends in the market including rapid delivery, ambient retailing, supply chain disruption, and inflation
Assess developments within this sector to help your business thrive in 2022 and beyond.
by GlobalData
Enter your details here to receive your free Report.

Topics in this article: ,
NEWSLETTER Sign up Tick the boxes of the newsletters you would like to receive. A weekly roundup of the latest news and analysis, sent every Friday. The industry's most comprehensive news and information delivered every other month.
I consent to GlobalData UK Limited collecting my details provided via this form in accordance with the Privacy Policy
SUBSCRIBED

THANK YOU

Thank you for subscribing to Just Food