Preliminary Issues for Heinz Wattie’s/Cerebos Gregg’s Merger

Statement of Preliminary Issues for Heinz Wattie’s/Cerebos Gregg’s Merger

The Commerce Commission has published a statement of preliminary issues relating to an application from H. J. Heinz Company (New Zealand) Limited (Heinz Wattie’s) to acquire the food and instant coffee business of Cerebos Gregg’s Limited (Cerebos Gregg’s).

The statement outlines the main issues the Commission considers important in deciding whether or not to grant clearance to the proposed merger.

The Commission invites submissions from those who consider they have information relevant to our consideration of this matter. Submissions can be sent to registrar@comcom.govt.nz with the reference Heinz/Cerebos in the subject line by close of business on Friday 12 January 2018.

The Commission is currently scheduled to make a decision on the application by 15 February 2018. However, this date may be extended as the investigation progresses, and in particular, if we need to test and consider the issues identified further.

The statement of preliminary issues and public version of the application is available on the Clearances Register.

Background
The ultimate parent company of Heinz Wattie’s is the Kraft Heinz Company, a public company listed on the NASDAQ whose core products are beverages, cheese, convenience foods, dairy foods, and snack foods. In New Zealand Heinz Wattie’s manufactures and supplies jams, dressings, soups, sauces, beans, spaghetti, canned fruit and vegetables, frozen meals and vegetables, pates and dips. Relevant to the application for clearance is the range of sauces that Heinz Wattie’s supplies to supermarkets and the food service industry in New Zealand under the brands Wattie’s, Heinz, Lea & Perrins, HP, and Gourmet.

Cerebos Gregg’s is ultimately owned by Suntory Beverage & Food Pte Ltd, a food and beverage company operating throughout Australasia. In New Zealand, Cerebos Gregg’s produces sauces under a number of brands including Cerebos, Gregg’s, F. Whitlock & Sons, and Asian Home Gourmet.

When considering a proposed merger, the Commission must determine whether any competition that would be lost with the merger would be substantial. We will give clearance to a proposed merger only if we are satisfied that the merger is unlikely to have the effect of substantially lessening competition in a market. A fact sheet explaining how the Commission assesses a merger application is available on theclearances page.

ENDS

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