Dive Brief:
- Kellogg Co. plans to expand its footprint in the African markets through a $450 million joint venture with Tolaram Africa Foods.
- "According to Kellogg, the deal includes a 50% stake in Nigeria-based food distributor Multipro and an option to acquire a stake in Tolaram in the future," The Wall Street Journal reported.
- This is the latest example of a U.S. processed foods company looking to expand production and distribution overseas.
Dive Insight:
Kellogg is touching on the African market with this joint venture, similar to what it did with Bisco Misr when Kellogg closed an acquisition deal for a majority stake in the Egyptian packaged biscuits maker earlier this year.
"Kellogg said it intends to develop snacks and breakfast items for the West African market through the joint venture. The world's largest cereal maker will also get access to Multipro's distribution network in Nigeria and Ghana, and potentially in the Dominican Republic of Congo, Ivory Coast, Cameroon and Ethiopia," Reuters reported.
International expansion has been the route other U.S. processed foods companies are taking as well as sales slow down back home. In July, Mondelez International finalized a deal for a majority stake in Vietnamese confectionery company Kinh Do, and Coca-Cola Co. announced its acquisition of Xiamen Culiangwang Beverage Technology Co., Ltd., a Chinese plant-based protein drinks company, in April.