Sixty percent owned by Chinese company Bright Food since 2012, originating UK based cereal Weetabix is set to be acquired by US company Post Holdings for $1.8 billion. The deal signals Bright Food’s struggle to appeal to Chinese consumers, who prefer hot rice meals over the UK staple.
Post Holdings is currently the third largest cereal firm in the US, so it is only clear that this acquisition will further cement the company’s international presence and market growth across the board, beating General Mills, Nestle and PepsiCo to the deal.
Weetabix remains one of the most popular cereal brands in the UK since its establishment in Northamptonshire in the 1930s. Previously a family-owned business until 2004, the cereal is currently exported internationally, with factories in the US, Europe and Africa.
Rob Vitale, Post Holding’s President and Chief Executive, said: “We have long admired Weetabix as a leader in cereal and believe it will be a fantastic strategic fit within Post. Combining together two category leaders continues our strategy of strengthening our portfolio in stable categories and diversifying into new markets, bringing much-loved brands to significantly more customers globally. We are excited about the growth opportunities that this acquisition brings.”
Weetabix’s Director of Marketing Sally Abbott will consequently become Managing Director of Weetabix UK and Ireland, in addition to Chief Executive Giles Turrell, who will become company Chairman. He said, “Post is a leader within its markets and shares our commitment to providing great tasting nutritious products for the whole family. I’m confident they will help us open doors for continued expansion.”