The Kraft Heinz Company will acquire food sauce company Assan Foods from Kibar Holding in a deal valued at $100 million that's expected to help the company expand its international presence.
Assan Foods manufactures and sells tomato paste, ketchup, mayonnaise, and pasta and meat sauces, among other products, that are sold under brands such as Colorado, Kingtom and Oba, as well as private label. Headquartered in Istanbul, it was established in Balikesir in 1998 by Turkish conglomerate Kibar Holding.
The company has around 400 employees and exports to around 50 countries on four continents through its manufacturing facilities in Balikesir and Izmir. It’s been a certified production partner for Kraft Heinz since 2019.
As part of its turnaround strategy, Kraft Heinz has transitioned its portfolio management to focus on six consumer needs: Taste Elevation, Easy Meals Made Better, Real Food Snacking, Fast Fresh Meals, Easy Indulgent Desserts and Flavorful Hydration. This deal, which is expected to close in the second half of this year, is intended to help the No. 23 consumer goods company build its retail and foodservice business across Europe, the Middle East and Africa, and will provide an opportunity to accelerate its international growth strategy centered on Taste Elevation, said Rafael Oliveira, Kraft Heinz international zone president, in a statement.
“We believe Assan Foods is a high-performance organization that brings best-in-class local innovation and production of sauces and tomato products, as well as a significant distribution network in the fast-growing foodservice channel,” noted Oliveira, “enabling us to further build our scale and agility by expanding the Heinz brand in Turkey, as well as our International Taste Elevation platform more broadly.”
The Kraft Heinz Company reported net sales growth of 3.9% and organic net sales growth of 2.5% in the first quarter. Although sales were better than expected, growth was partially offset by ongoing foodservice declines, decreased retail sales compared with the pandemic-prompted pantry loading in the prior-year period, and a negative impact from exiting a McCafé licensing agreement.
The company recently unloaded its Planters brand to Hormel Foods in a $3.35 billion deal.