Post Holdings’ Weetabix has acquired Deeside Cereals, another UK-based breakfast-cereal business, from Wholebake in an effort to expand its capabilities and manufacturing capacity. The deal was announced and completed on 1 December.
According to the statement by Weetabix, Deeside Cereals will continue to operate as a standalone business, and there are no immediate plans to make any changes to the site or the workforce. Prior to this acquisition, both Wholebake and Deeside Cereals had been acquired by London-based private-equity firm Elysian Capital in 2021.
In 2017, Weetabix itself was acquired by US-based Post Holdings from its majority shareholder, Chinese firm Bright Food Group. Weetabix’s portfolio includes brands such as Alpen, Ready Brek, and Crunchy Bran, in addition to its own brand name. Post Holdings-owned Weetabix made another acquisition last year, snapping up UFit, the protein shakes business then-owned by Lacka Foods.
In Post Holdings’ financial year up to 30 September, Weetabix generated sales equivalent to $512.1m, indicating an increase of 7.3%. However, segment profit saw a decrease of 32.5% while adjusted EBITDA dropped to $110.2m, down 24.9%.
Discussing these results, Post Holdings’ CEO, Jeff Zadok, emphasized the importance of simplifying the business to face the challenges of a UK market where private-label cereals now make up more than 50% of sales. Zadok highlighted the necessity of renewed focus on cost reduction to maintain premium price points and generate margins.
Keywords: food and beverage industry trends, food and drink business, food and drink consumer trends.
