23 Apr 2015 Pioneer Foods acquires half of FutureLife
Pioneer Foods is upping its competitive ante again under new(ish) CEO, Phil Roux, with an announcement today that it’s to acquire 50% of Durban-based FutureLife Health Products, the fast-growing functional food products company, and together create a joint venture to unlock new product opportunities. The purchase price is undisclosed.
Says a Pioneer announcement:
The transaction allows Pioneer Foods, which houses well-known brands such as Weet-Bix, Bokomo, Liqui-Fruit, Sasko and White Star, to complement its existing product portfolio with the addition of one of South Africa’s fastest-growing health brands within the functional foods category, in which Pioneer
Foods is not currently represented.
The joint venture provides an opportunity for both companies to combine their expertise in both the food and beverage, and functional foods sectors in order to explore profitable categories outside of their respective traditional markets, and to unlock new product opportunities that may otherwise not
be accessible to either company.
“As a leading FMCG company, innovation is at the core of our business. This joint venture with FutureLife, an industry leader in the functional foods category, provides Pioneer Foods with an opportunity to shape a winning brand portfolio by fast tracking product innovations and developing new product categories,” said Phil Roux, CEO of Pioneer Foods.
Founder and CEO of FutureLife, Paul Saad, said the joint venture is set to be a win for the South African consumer: “Combining Pioneer Foods’ scale and experience in the food and beverage market together with our functional food expertise in creating the first smart food range of products will result in exciting new health choices for the consumer.”
The transaction is subject to a number of conditions precedent, which are standard for a transaction of this nature, including Competition Commission approval.
Saad will lead and manage the joint venture.
Related reading:
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