H.J. Heinz Company has confirmed the news reported in just-food yesterday that it has completed the sale of its stake in Olivine Industries (Put) Ltd. in Zimbabwe to the government of Zimbabwe.
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Heinz had owned a 51% stake in the business and the remaining 49% was owned by the government. Terms of the transaction were not disclosed.
Michael Mullen, director of global corporate affairs said: “This sale is another step in the Company’s global strategy to drive profitable growth and innovation in three core categories where Heinz has strong brands. Olivine is a wonderful business and Heinz has enjoyed its relationship in Zimbabwe since 1982. The decision to sell the business was only taken after a comprehensive review of all strategic options.”
The sale of Heinz’s interest in Olivine includes cooking oil under the Olivine brand, margarine under the Buttercup brand, and soap under the Jade brand. Approximately 1,200 employees are employed by Olivine in manufacturing facilities located in Harare and Chegutu.
On 1 June 2006, Heinz took a charge to write-down its investment in Zimbabwe as a result of the continuing uncertainty regarding the stability of the currency and economic conditions in the country.
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