Through its wholly-owned subsidiary Orkla Foods Sverige AB, Orkla has signed and completed an agreement with PepsiCo, Inc. (“PepsiCo”) to purchase the Havrefras brand, including Rug Fras and Mini Fras, which holds a strong market position in Scandinavia in healthy breakfast cereals.
Orkla currently distributes Havrefras products for PepsiCo in Norway, Sweden and Denmark.
“Orkla is well known for its strong, local brands, and the acquisition of Havrefras is strategically appropriate for strengthening our position as leading branded consumer goods supplier. All the Havrefras products bear the Green Keyhole healthy food label and thus contribute to achieving Orkla’s goal of making everyday food healthier, says Orkla President & CEO Jaan Ivar Semlitsch.
“Orkla holds a leading position in the Scandinavian grocery trade in a number of attractive categories. By acquiring Havrefras we have strengthened our portfolio with a well-known brand that is a great addition to our other breakfast products,” says Ann-Beth Freuchen, EVP and CEO of Orkla Foods (Nordics and Baltics).
Havrefras is market leader for healthy breakfast cereals in Denmark and Sweden and number two in Norway. First launched on the market in 1959, the brand has been part of PepsiCo since the company’s acquisition of The Quaker Oats Company in 2001. The acquisition of Havrefras is in line with Orkla’s strategy of further developing a portfolio with a strong health profile.
The agreement concerns the purchase of the Havrefras brand and does not include any employees or production facilities. The parties have agreed not to disclose the purchase price.
Orkla will continue to be the distributor of PepsiCo’s other juice, breakfast cereal and snack products in the Nordic region, including Tropicana, Naked, Cruesli, Snack a Jacks, Doritos, Lay's and Bugles brands.
Orkla is a leading supplier of branded consumer goods and concept solutions to the consumer, out-of-home and bakery markets in the Nordics, Baltics and selected markets in Central Europe and India. Orkla is listed on the Oslo Stock Exchange and its headquarters is in Oslo. In 2019, the Group had a turnover of NOK 43.6 billion, and approximately 18,350 employees as of 31 December 2019.
PepsiCo products are enjoyed by consumers more than one billion times a day in more than 200 countries and territories around the world. PepsiCo generated more than $67 billion in net revenue in 2019, driven by a complementary food and beverage portfolio that includes Frito-Lay, Gatorade, Pepsi-Cola, Quaker and Tropicana. PepsiCo's product portfolio includes a wide range of enjoyable foods and beverages, including 23 brands that generate more than $1 billion each in estimated annual retail sales.
Guiding PepsiCo is our vision to Be the Global Leader in Convenient Foods and Beverages by Winning with Purpose. "Winning with Purpose" reflects our ambition to win sustainably in the marketplace and embed purpose into all aspects of the business. For more information, visit www.pepsico.com
Oslo, 2 June 2020
Dag Olav Stokken
Tel.: +47 916 65 078
VP Investor Relations
Tel.: +47 951 41 147