02 Oct 2015 Rhodes Food buys local General Mills operation

Rhodes Food group has added muffins, croissants, cookies and pizza to the list of convenience foods it will distribute after snapping up part of global food manufacturer General Mills’ South African operations.

The Cape Town-based food company announced that it had entered into an agreement with General Mills SA to acquire its food services business for an undisclosed amount. It operates out of a factory in Linbro Park, Jo’burg.

The deal, which marks the fifth acquisition Rhodes has made since listing on the JSE last October, would be effective on November 30, the company said.

General Mills has operated its bakeries and food services business in SA for 20 years through its Pillsbury brand, which offers baking and dessert mixes. In the May financial year, the business generated revenue of R65m.

According to its website, General Mills Bakeries & Foodservice products, “dominate the category within the South African foodservice market under the Pillsbury brand. The range includes frozen and dry product that are quick and easy to use.” The range has grown substantially and now includes the following:
• Pillsbury Tubeset batters
• Croissants
• Cinnamon Scrolls
• Ready-to-eat, flow-wrap muffins
• Ready-to-eat, multi-pack muffins
• Place and bake frozen preformed cookies
• Frozen Pizzas
• Dry bakery mixes

Last month local competition authorities approved its bid for Boland Pulp, a fruit and vegetable juice purée maker, and Deemster, a manufacturer of pickled food.

Ron Klipin, an analyst at Cratos Wealth, sees good prospects for Rhodes Foods in terms of diversifying and being nimble on the acquisition front.

“They have delivered. It looks like they are building up an even bigger food offering now. Their existing portfolio has some very good brands and they have good relationships with (retailers) like Woolworths,” he said.

Rhodes has an exclusive agreement with Woolworths to supply ready-made meals and pies.

Source: BDLive.co.za