PepsiCo divests Marmite, Bovril, and Savoury Ingredients business to Lallemand

Source: www.ft.com

The transaction is expected to close in Q4 2024, subject to approval from the Competition Commission of South Africa.

The Savoury Food Ingredients business unit, based in Johannesburg, produces Marmite and Bovril for sale to Southern African consumers through retail outlets and through wholesalers serving the informal retail market.

It also produces savoury food ingredients, including brewers yeast extract and hydrolysed vegetable protein-based flavourings for use by South African based food manufacturers and international customers.

Commenting on the proposed transaction, Antoine Chagnon, CEO of Lallemand said, “We are committed to making biotechnology one of the answers to the challenges the world faces with respect to, nutrition, health and the environment. Lallemand has significant experience in producing yeast, yeast derivatives and yeast-based food ingredients.

The addition of the Marmite and Bovril brands will be highly complementary to our Anchor Yeast consumer product offering and existing business with South Africa’s leading retail outlets. This Savoury Food Ingredients business unit is also complementary to the taste and savoury solutions offered by Lallemand Bio-Ingredient’s business to its global food manufacturing customers. The proposed acquisition demonstrates Lallemand ongoing commitment to the Southern African region.”

PepsiCo South Africa’s CEO, Riaan Heyl, said, “The sale of the Savory Food Ingredients business unit is in line with the company’s vision to win in the marketplace with a simplified and focused product portfolio. We feel Anchor Yeast’s expertise in this sector makes it well placed to take on and further develop this opportunity”.