Kraft Heinz to sell baby food biz in Russia to Chernogolovka

The Kraft Heinz Company is selling its baby food business in Russia, and a local company, Chernogolovka, is buying it. The deal comes as local firms continue to take advantage of the departure of Western brands due to the ongoing war as Russia tries to invade Ukraine.

Kraft Heinz agreed to offload its Russian baby food unit and confirmed that the said beverage and snacks production company is set to acquire it. As per Reuters, with the exit of many American brands from Russia, Chernogolovka has been benefiting from the corporate exodus.

In fact, the company is considered one of the major beneficiaries as it has already taken over Kellogg Company’s local operations and still looking to further boost its share this time in the soft drinks market as Pepsi and Coca-Cola also exit.

In any case, Chernogolovka’s deal with Kraft Heinz will include the acquisition of two plants in addition to the Sami s Usami and Umnitsa baby food brands. Based on the report, the companies had been negotiating even before the conflict with Ukraine started. Then again, it was clarified that the deal is still subject to regulatory approval.

"We anticipate closing the deal in the second half of 2023 (Q3) and will continue working with Chernogolovka post-completion, to ensure a smooth integration," the spokesperson of Kraft Heinz told Reuters. "The decision to sell is a commercial decision in the best interests of our people and the local communities who rely on the local distribution of baby food products.”

He added, "This agreed sale ensures we can continue to keep vital baby food products accessible to all."

Meanwhile, AK&M reported that while the negotiations are ongoing, Chernogolovka will be able to use Kraft Heinz’s baby food brands during the transition period. The American food company is planning to complete the deal by the summer of this year after the regulators issue the approval.

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