Pioneer Foods: New deal to put $7m into new firm

PIONEER Foods has entered into a deal to invest about $7 million (R82.3 million) into a new company, Food Concepts Pioneer Limited (FCPL), together with a partner, Food Concepts. Pioneer Foods, which manufacturers brands such as Sasko, Weetbix and White Star Super Maize Meal among other brands, said yesterday it would obtain the majority shareholding in Food Concept Pioneer, which houses the business of Butterfield Bakeries, a Nigerian baked goods business specialising in bread and sausage roll production. Food Concepts, which was founded by a local businessman Deji Akinyanju, will assist with trading skills in the local market, which would be beneficial for Pioneer’s technical team. Pioneer Foods already had a significant export footprint in a number of African countries, and with the conclusion of this partnership with Food Concepts, created a presence for Pioneer Foods in Nigeria via a low-risk entry strategy, the company said. “FCPL provides an ideal opportunity to leverage our expertise to grow the bread category and to establish a national bread brand over time in a gradual low-risk manner,” said Pioneer’s chief Phil Roux. Pioneer shares closed unchanged at R165. – Nompumelelo Magwaza