The deal was struck for a reported £7.5M and was in line with Pioneer’s strategy of “acquiring and bolstering Pioneer Foods’s product range in the UK with branded options”, according to the firm.
In a statement to the Johannesburg stock exchange, Pioneer said: “The acquisition will augment and leverage the company’s UK [own-label] portfolio and its recently-upgraded manufacturing capabilities.”
Stream Foods – which produces children’s snack food brand Fruit Bowl – was purchased from Wellness Foods.
‘Staff and manufacturing needs’
Ceo of Pioneer’s UK own-label cereals company Bokomo said: “While research and product development are key to our future plans, so too are the staff and manufacturing needs.
“As a result, the plan will be to invest in training, development and manufacturing capabilities – all set to position Fruit Bowl as the UK’s leader in the fruit snacking industry.”
Stream Foods
- Established in 1999
- 98 workers at its Wisbech site
- Produces Fruit Bowl range of kids’ snacks
Stream Foods marketing manager Nick Munby said it would be “business as usual” for Fruit Bowl following the deal and investment in in the healthy snack category would continue.
Stream Foods employs 98 people at its factory in Wisbech, Cambridgeshire and its products are sold in Europe and China.
Its Fruit Bowl range includes dried fruit flakes, fruit bars and yogurt covered snacks.
Second largest producer
Established in 1997 after the merger of Bokomo and bread and flour manufacturer Sasko, Pioneer is South Africa’s second largest producer of staple foods, including bread, rice, maize meal, and cereals.
Meanwhile, Greencore Group has acquired The Sandwich Factory from Cranswick for £15M, as part of its strategy to boost its food-to-go business last month (July 24).
The acquired business will extend Greencore’s presence in the high growth food-to-go category outside of its current core business with large grocery customers.