US food giant Kraft Heinz is to sell its B2B powdered cheese business to Irish ingredients major Kerry Group for US$107.5m.

The deal includes a manufacturing facility in Albany in Minnesota. The 62 employees at the location will be transferred from Kraft Heinz to Kerry.

Beans, sauces and soup manufacturer Kraft Heinz said the sale of the powdered cheese unit – which was part of its ingredients business – “reflects the company’s ongoing and active portfolio optimisation”.

A Kraft Heinz spokesperson declined to comment on whether the company would look to sell more ingredients assets, or on the division’s annual sales.

The group’s Kraft Heinz Ingredients business supplies a range of cheese and dairy ingredients to food manufacturers, including processed cheese and soft cheese. Its ingredients arm also offers confectionery ingredients and condiments.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData

Kerry, meanwhile, said the acquisition enhances its “scale, manufacturing capability and customer base in the important snacking category”.

In 2020, Kraft Heinz sold a clutch of cheese brands to Lactalis, the French dairy heavyweight, for $3.2bn while at the same time announcing a wider “transformation plan” to grow more consistently. Lactalis subsequently had to sell two of the brands after a competition review.

Two years earlier, the Heinz soup maker sold its Canadian natural cheese business to Parmalat, the Italy-based dairy company majority-owned by Lactalis, for CAD1.62bn (then US$1.23bn).

Kraft Heinz continues to sell cheese products under brands including Kraft and Philadelphia.