Mondelez International unaffected by Kraft merger with Heinz, company says
Mondelez International Australia will not be affected by the global merger between Heinz and sister company Kraft Foods, with the company remaining independent of the $40 billion deal.
Kraft split its operations three years ago into two public companies, Mondelez International and a new Kraft Foods Group, bundling all its Australian operations under the Mondelez banner.
However, it is unclear whether Heinz’s operations in Australia will be affected by the merger which creates the world’s fifth largest food company, and is expected to produce savings of US$1.5 billion by 2017 worldwide, with the consolidation of media buying and creative work likely to be among the areas identified for potential synergies.
A spokeswoman for Mondelez in Australia said the merger has no bearing on the Australian business even though products, including Vegemite and peanut butter, continue to carry the Kraft brand.
“While we were formerly known as Kraft Foods, in 2012 we had a spin-off which created two totally separate and independent companies,” she said.
“We are not part of the Kraft Foods business so today’s announcement has no impact on us.”
Heinz Australia could not be reached for comment.
OMD picked up the media account for Heinz last year.
Dentsu Aegis agency Vizeum had been the media agency for the stable of brands which includes soups, sauces, baked beans and Golden Circle juices in Australia.
The food company also switched its above-the-line agency earlier this month from GPY&R Melbourne to Channel T.
Steve Jones
Mondelez started to remove the Kraft name from Vegemite and Philadelphia cream cheese about a year ago. The Kraft name is no longer on jars of Vegemite.
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I remember pitching for Kraft many years ago!
How times have changed since the mid to late 90’s…. back then a large national brand like Kraft would never dream of placing a hard to pronounce South American name on its jars of Vegemite – the country would have been up in arms!
Thanks
Paddy
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