US company Post Holdings today announced the acquisition of UK cereal firm Weetabix.
Weetabix is one of the most established cereal brands in the UK, having been made in Northamptonshire since 1932. In 2012, Chinese firm Bright Foods, purchased a 60% stake in the company. At the time, it was the largest acquisition by a Chinese firm, however the company has struggled with market share since then.
Weetabix is the largest producer of breakfast cereals in the UK. The firm employs around 2,000 people, primarily in its Kettering-based factory. Until 2004, the company, which has a royal warrant, was family owned, before being purchased by private equity firm Lion Capital.
Weetabix Doubled Chinese Sales in 2016
The hot cereal doubled its sales in China last year. It is also sold in over 80 countries, but the UK still accounts for most of its sales. The struggles to increase market share in China, where hot, rice-based breakfasts are preferred, are believed to be behind the sale.
Post Holdings owns household brands including Golden Crisp, Great Grains and Cocoa Pebbles. It is the third-largest cereal company in the United States. The US giant is believed to have fought off strong competition which included Italy’s Barilla and Associated British Foods. The decline in the British Pound and the strengthened US Dollar are thought to be the dominant factor in Post Holdings making the purchase.
Sally Abbott, the current director of marketing at Weetabix, will be installed as managing director of Weetabix UK and Ireland. Meanwhile, Giles Turrell, the current chief executive, will become the company’s chairman
