FMCG giant Kraft Heinz has reached an agreement to sell its baby food business in Russia to Chernogolovka, a domestic food and drinks manufacturer, according to a Reuters report.
The deal includes the brands Umnitsa and Sami S Usami and was reportedly already in progress prior to the conflict in Ukraine.
“The decision to sell is a commercial decision in the best interests of our people and the local communities who rely on the local distribution of baby food products”, KraftHeinz is quoted as saying. “This agreed sale ensures we can continue to keep vital baby food products accessible to all”.
According to Reuters, Chernogolovka has recently benefited from the decision of other companies to exit Russia, such as buying Kellogg Co’s operations and increasing its share of the soft drinks market after the exit of PepsiCo and Coca-Cola.
Financial details of the deal, which is expected to close in Q3, were not disclosed.