1 Nov - Suntory Beverage & Food (SBF) has entered into an agreement to sell its Cerebos Food & Instant Coffee business in Australia and New Zealand and its Asian Home Gourmet Singapore business to US giant The Kraft Heinz Company for a total of AU$290 million. Cerebos’s Food & Instant Coffee business includes iconic food brands in Australia and New Zealand such as Fountain, Gravox, Saxa, Foster Clark’s, Gregg’s, Bisto, Raro and Asian Home Gourmet. These cover a range of products including sauces, gravies, herbs and spices, salt, condiments, Asian sauces, desserts and cooking ingredients.
However, SBF will retain its Cerebos Fresh Coffee business in Australia/New Zealand led by Terry Svenson, CEO of Cerebos Australia and New Zealand. The new business unit, called ‘Suntory Coffee’, will target the rapidly growing global fresh coffee market.
Although Svenson stated that the manufacturing efficiency of the Food & Instant Coffee business has significantly progressed in 2017, he explained the reasons behind the decision to sell it.
“Food & Instant Coffee is not a core focus category for SBF and we believe this business can be maximised under different ownership. The Food & Instant Coffee business will now have opportunities to leverage Kraft Heinz’s operations to grow the business further,” he said. “In the meantime, the transaction also enables our Fresh Coffee business to benefit from SBF’s continued investment and focus on its beverage portfolio, so we can capitalise on our market-leading positions to maximise growth opportunities.”
The acquisition of Cerebos Food & Instant Coffee marks Kraft Heinz’s aim to expand its already well-established platform in Australia and New Zealand. As the fifth-largest food and beverage company in the world, it possesses several well-known brands including Heinz, Kraft, Wattie’s, Eta and Golden Circle, which sell beans and spaghetti, sauces, soups and dressings.
Bruno Lino, CEO of Kraft Heinz Australia and New Zealand, said: “The transaction provides an exciting opportunity for Kraft Heinz to expand its portfolio into complementary categories, stretching the footprint of Cerebos’s brands into new categories and markets.
“In addition to the iconic local brands, Cerebos has a strong team that will play an important role in our future growth. This transaction reinforces our commitment and long-term plan to the Australia and New Zealand markets in addition to our significant investment in the Kraft brand for 2018. We will continue investing in our brands, factories and our employees to meet consumer needs and expectations,” he said.
The combined businesses will be led by Lino. The sale is expected to be completed in early 2018, subject to regulatory approval.
|A FoodProcessing release || November 1, 2017 |||
The NZ$36 billion New Zealand Superannuation Fund and Fidelity Life, New Zealand’s largest Kiwi-owned life insurer, today announced a proposal for the Fund to take a minimum NZ$100 million, 41.1% cornerstone stake in Fidelity Life. The transaction is subject to a number of conditions, some of which require action from shareholders.
Fidelity Life Chair, Brian Blake, says securing the NZ Super Fund as a major shareholder will provide new capital which will enable the company to accelerate its growth strategy.
“Fidelity Life has experienced strong growth in recent years and this has outpaced our ability to fund the future rate of growth we’re aiming for without additional capital.”
“If our shareholders provide the necessary approval for the investment to proceed, the new capital will allow us to deliver on our future strategy providing strong, sustainable returns and growth over the long term,” said Mr Blake.
Fidelity Life is privately held by more than 150 shareholders. The proposed investment is to be made up of $75 million of new shares issued to the NZ Super Fund at $115 per share; and the acquisition of a minimum of $25 million of existing shares. As part of the acquisition of existing shares, eligible minority shareholders (including all New Zealand resident shareholders) will have the opportunity to sell some or all of their shares to the NZ Super Fund for $130 per share. This offer does not extend to the Company's majority shareholders. The NZ Super Fund will acquire shares from the Fidelity Family Trust at $115 per share.
“The NZ Super Fund is a great fit with Fidelity Life. We were both founded by Kiwis for Kiwis and are focussed on protecting the future for New Zealanders. The proposed investment represents a strong vote of confidence in Fidelity Life by New Zealand’s pre-eminent investor,” said Mr Blake.
NZ Super Fund Chief Investment Officer Matt Whineray said: “This is a rare opportunity for the Fund to take a significant direct stake in a New Zealand life insurance company. The additional capital we are providing will support Fidelity’s long-term growth plans.”
Independent advisers Simmons Corporate Finance have concluded that the value of the Fidelity Life shares involved in the proposed transaction is in the range of $110-$130 per share and that the total value of the company is between $198 million and $220 million.
“This is an exciting future step for Fidelity Life. We have come a long way since we were founded in 1973. We have more than 100,000 customers and our products are distributed via a network of 2,700 independent financial advisers and through strategic alliances. This new capital will enable us to build digital capability to support innovation, productivity and improved support for customers, advisers and our partners,” said Nadine Tereora, Chief Executive of Fidelity Life.
Fidelity Life’s Board is recommending shareholders support the investment. Shareholders, including the Fidelity Family Trust, will vote on changes to Fidelity Life’s constitution needed for the proposal to proceed at the company’s Annual Meeting on 12 December. If the constitution is altered and other conditions are met settlement will occur after then.
Shareholders can expect to receive their voting papers with the Notice of Meeting on 9 November.
About Fidelity Life
Fidelity Life is a New Zealand-owned insurance company with the purpose of protecting the New Zealand way of life. The company believes independent financial advice matters in ensuring Kiwis get access to the insurance protection they need. Fidelity Life distributes its products through a network of 2,700 independent financial advisers, as well as through strategic alliance partners, and employs around 300 staff across six offices. For more information please visit www.fidelitylife.co.nz
About The New Zealand Superannuation Fund
The $36 billion NZ Super Fund is a global investment fund that was established by the NZ Government to help pre-fund universal superannuation. A long-term, growth-oriented investor, the Fund has returned 10% p.a. since inception in 2003, and currently has around $5 billion invested in NZ, including significant stakes in Kaingaroa Timberlands, Datacom, Kiwibank and Metlifecare. For more information please visit www.nzsuperfund.co.nz
| A FidelityLife release || October 31, 2017 |||
1 Nov: The East Coast Farming Expo to be held at the Wairoa A&P Society grounds has begun its six-month countdown to showtime reports the Wairoa Star. The two-day event, which is hosted by the Society will be held on April 11 and 12, next year. Two days of interactive exhibits and seminars will give East Coast and Hawke’s Bay farming communities the opportunity to interact face-to-face with industry innovators and experts.
“If you are an East Coast/Hawke’s Bay farmer looking for the answers to keep your business moving forward, or an agricultural innovator wanting to spread your message, this event is perfect,” said event director Dave Martin. The whole point of the expo is about acknowledging the importance of face-to-face interaction when it comes to learning about new technology.
“Farmers on the East Coast miss out a lot so the expo is an opportunity for them to interact directly with specialist industry innovators, but in a more intimate environment and closer to home.
Continue here to read the full article in the Wairoa Star || November 1, 2017 |||
Palace of the Alhambra, Spain
By: Charles Nathaniel Worsley (1862-1923)
From the collection of Sir Heaton Rhodes
Oil on canvas - 118cm x 162cm
Valued $12,000 - $18,000
Offers invited over $9,000
Contact: Henry Newrick – (+64 ) 27 471 2242
Mount Egmont with Lake
By: John Philemon Backhouse (1845-1908)
Oil on Sea Shell - 13cm x 14cm
Valued $2,000-$3,000
Offers invited over $1,500
Contact: Henry Newrick – (+64 ) 27 471 2242