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Mondelez sells most of grocery business in Oceania for $345.3 million

Staff Writer |
Mondelez International is selling most of its grocery business in Australia and New Zealand to focus on snacks like Oreo cookies and chocolate like Cadbury.

Vegemite and other grocery products are being sold to Australian dairy company Bega Cheese in a deal worth about $345.3 million.

Vegemite was introduced in the 1920s, and the salty, slightly bitter spread made from yeast extract has become a staple in Australia households.

Also included in the sale are other local Australian grocery products, and products that use the Kraft brand under licensing.

Mondelez had licensing rights for those products overseas after its split with Kraft Foods in 2012. Mondelez says it is holding onto Philadelphia cream cheese in Australia.

Michael Mitchell, a Mondelez spokesman, said about 200 employees will be offered roles "on comparable terms" with Bega Cheese.

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