Sanitarium is in pursuit of acquiring the Vita Brits breakfast cereal brand, currently owned by Nestlé in Australia. This proposed transaction was disclosed by the Australian Competition and Consumer Commission (ACCC), which announced plans to conduct a thorough review of the deal.
Sanitarium, officially known as the Australian Health and Nutrition Association, is recognized for its Weet-Bix cereal brand in Australia. Notably, it also produces the Vita Brits range on behalf of Nestlé, according to the ACCC’s statement. In the context of branding, Vita Brits falls under Nestlé’s Uncle Tobys label.
The ACCC highlighted, “The parties overlap in the national wholesale supply of wheat biscuit cereal products,” further noting that Vita Brits and Weet-Bix are similar products, both being rectangular wheat biscuits composed of 99% wholegrain wheat.
To ensure transparency and gather diverse opinions, the ACCC has called for submissions from “interested parties” who may support or oppose the proposed transaction. The deadline for feedback is set for October 4.
The ACCC’s investigation will specifically assess the implications of the proposed acquisition on market competition. It will explore how closely Weet-Bix and Vita Brits compete in the breakfast cereal sector and analyze the potential effects on pricing and product quality post-acquisition.
A spokesperson from Nestlé confirmed that the agreement to sell the Vita Brits brand to Sanitarium has been reached. This transaction is anticipated to finalize early next year, contingent on ACCC approval. The spokesperson added, “In the transition period, we will work closely with Sanitarium to ensure a smooth transition of the Vita Brits listings for our retail partners and loyal Vita Brits consumers.”
Just Food has also reached out to Sanitarium for comments. The company acknowledged the ongoing deal but chose not to disclose additional details at this time. As a not-for-profit organization entirely owned by the Seventh-day Adventist Church, Sanitarium also offers various products, including Weet-Bix, Weet-Bix Bites, and Weet-Bix Gluten Free.
The ACCC initiated its review on September 30, with an expected completion date of November 21, pending collected feedback. Nestlé’s divestiture of the Vita Brits brand occurs shortly after the appointment of Laurent Freixe as CEO, who replaced the long-serving Mark Schneider. Freixe, the former executive vice president and CEO of Nestlé’s Latin America division, officially assumed his new role on September 1.
Additionally, Nestlé announced another asset sale this month—the Cremora creamers line in South Africa, which will be acquired by French dairy giant Lactalis at an undisclosed amount.
In summary, this strategic move by Sanitarium indicates an evolving landscape in the food and beverage industry, reflecting ongoing consumer trends and competitive dynamics within the food and drink business.
