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June 11, 2021

Kraft Heinz to buy Turkey sauces firm Assan Foods

The US giant has snapped up one of its co-manufacturers.

Kraft Heinz has acquired Assan Foods, a Turkey-based condiments supplier that has been one of the US giant’s co-manufacturers.

Assan Foods, set up in 1998, has worked with Kraft Heinz for two years. From two factories, the company manufactures products including ketchup and mayonnaise, as well as pasta and meat sauces.

The business, which was part of the Turkish conglomerate Kibar Holding, markets products under brands such as Colorado, Kingtom and Oba, as well as offering a private-label service.

Kraft Heinz believes the acquisition will help it build its retail and foodservice businesses “across Europe, the Middle East and Africa”. Assan Foods, it said, exports to around 50 markets.

Rafael Oliveira, president of Kraft Heinz’s international division, described Assan Foods as “a high-performance organisation that brings best-in-class local innovation and production”.

Oliveira said the Istanbul-based company also has a “significant distribution network” in the foodservice channel.

Financial terms were not disclosed.

Assan Foods’ factories are in Balikesir in north-western Turkey and in Izmir, more than 120 miles further south. It employs 400 staff.

The deal, which Kraft Heinz expects to complete in the second half of the year, is the first full acquisition since Miguel Patricio was hired as CEO in 2019.

The ketchup, soup and baked-beans manufacturer has made minor investments in fledgling firms.

However, the accent of Kraft Heinz’s M&A activity in recent years has focused on disposals as Patricio sought to re-shape the business and pay down debts.

Earlier this year, the company sold its Planters snacks business to US peer Hormel Foods.

Last September, Kraft Heinz sold a clutch of cheese assets to French dairy group Lactalis.

Just Food analysis, September 2020: “This plan puts the future in our hands” – key takeaways from Kraft Heinz’s investor day

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