Philippine snack food and beverage company Universal Robina Corporation (URC) has partnered with German firm Intersnack Group (Intersnack) to aid larger and more efficient operations in Oceania. The deal was completed through URC’s British Virgin Islands subsidiary, URC Oceania Company Limited, which sold 40 percent of URC’s businesses in Australia and New Zealand. While the value of the deal is unknown, the transaction is a mix of cash and shares of Intersnack's Australian unit Yarra Valley Snack Foods Proprietary Limited.
“Through this transaction, URC monetizes some of the synergies it has generated from its early investments in Australia and New Zealand, while still retaining control and its ability to further create value within and beyond [the countries],” the company says.
The deal will be completed after the Australian Foreign Investment Review Board and the New Zealand Overseas Investment Office have given approval to the parties. Both URC and Intersnack specialize in snack foods such as popcorn, nuts, potato chips and tortilla chips. Intersnack is active in 24 countries, and generally holds first and second place in terms of market share, with an annual turnover of over €2.5 billion.
“Leveraging on URC and Intersnack's know-how from their respective markets will yield best practices in manufacturing, supply chain, and sustainability practices, setting the groundwork for an even larger and more efficient Oceania operation.”
This could be a lucrative time for snack food companies, as the way that people think about snacking and what is considered to be a snack is changing. Three square meals are no longer the mantra either – a fourth, fifth or even sixth meal culture is emerging, as grazers look for that little extra pick-me-up during a hectic day.
Snacking is no longer an optional extra, but the definitive occasion. Due to this, snacking has increasingly become a central focus of innovation across all food and beverage categories, with 10 percent average annual growth of global launches with a snacking claim over the past five years (CAGR, 2013-2017), according to Innova Market Insights data.
