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Latest headlines

Kellogg forms long-term partnership with Tolaram Africa

By Jeremy Gerrard
Kellogg, BCTGM union agree to new 5-year contract
September 15, 2015

As a strategic move toward increasing its presence in a growing African market, the Kellogg Company announced a new, long-term partnership with food company Tolaram Africa. Kellogg says it will seek to advance the company’s breakfast and snacks categories in the West African market to drive future growth.

"As a region that is experiencing explosive growth, with a population of almost one billion people and an economy that is expected to more than double over the next 10 years, Sub-Saharan Africa provides tremendous opportunity for our company," said John Bryant, chairman and CEO, Kellogg Company.

The new partnership includes a 50 percent acquisition of Tolaram company Multipro by Kellogg. According to Kellogg, the company agreed to pay $450 million for its stake in Multipro and the option to purchase a stake in Tolaram Africa Foods, a premier sales and distribution company in Nigeria and Ghana. Established in 1997, Multipro is headquartered in Lagos. The company provides access to approximately 1,000 exclusive distributors, 2600 employees and operates 19 warehouses, across six locations.  It is also establishing similar networks in other key African countries including Democratic Republic of Congo, Ivory Coast, Cameroon and Ethiopia.

Tolaram Africa Foods owns 49 percent of Dufil Prima, a manufacturer of several leading food brands, including Indomie noodles, Minimie snacks, Power oil and Power pasta.

 "Kellogg is a world leader in its categories and has successfully built brands that are synonymous with it. We're pleased to have entered into this partnership, as we share similar values and an aligned vision for Africa, a continent we have been operating in for over 35 years. This is another significant step towards providing affordable and wholesome nutrition for our expanding consumer base," said Sajen Aswani, CEO, Tolaram Group. 

KEYWORDS: food and beverage manufacturing mergers and acquisitions

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Jeremy Gerrard was Food Engineering's Digital/Online Editor. He is a graduate of Auburn University with a degree in journalism. His previous work experience includes years spent as a reporter with the Daily Local News out of Chester County, PA. In addition to writing feature articles for Food Engineering, Jeremy covered the Dry Processing, Field Reports and People and Industry news sections.

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