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Pioneer Foods

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– **History**:
– Created in 1997 after the merger of SASKO and Bokomo.
– Listed on the JSE in 2008 as PFG, delisted in 2020 after PepsiCo acquisition.
– Fined R195 million in 2010 for colluding with other bread producers.
– Quantum Foods unbundled from Pioneer Foods in 2014.
– Acquired a 49% stake in Weetabix in East Africa in 2016.

– **International Operations**:
– Manages breakfast cereals and fruit snacking in the UK.
– Established division with core export market relationships.
– Pioneer Foods UK acquired Lizis, a UK-based granola brand in 2017.
– Approved to buy the remaining 50.1% of Heinz South Africa in 2018.
– Added brands like Wellingtons, Mamas Pies, and John West through acquisitions.

– **References**:
– Pioneer Foods Integrated Report 2014.
PepsiCo finalized the purchase of Pioneer.
– Pioneer Foods fined for cartel involvement in 2010.
– Acquired 49.8% stake in Weetabix East Africa.
– Pioneer Foods subsidiary purchased Lizis brand in the UK.

– **Industry Impact**:
South Africa’s four largest milling companies controlled over 90% of the local flour market.
– Collusion among milling firms negatively affected consumers and competition.
– Price-fixing activities hindered smaller bakeries from competing effectively.
– Competition Tribunal approved Pioneer Foods’ acquisition of Heinz South Africa.
– Pioneer Foods strategic plan focused on acquiring companies in existing geographies.

– **Subsidiaries and Partnerships**:
– Pioneer Foods UK acquired Lizis from The GoodCarb Food Company.
– Pioneer Foods gained a 49% stake in Weetabix in East Africa.
– Pioneer Foods acquired Heinz South Africa in 2018.
– Pioneer Foods’ subsidiaries include Essential Foods and Groceries.
– Pioneer Foods UK bought granola brand Lizis in 2017.

Pioneer Foods (Wikipedia)

Pioneer Foods is a South African packaged goods company which in March 2020 became a subsidiary of PepsiCo. It operates in South Africa as well as two other African countries and exports a number of its brands globally. The company's core business is the production, distribution, marketing and selling of a diverse range of food, beverages and related products. The group employs approximately 8600 permanent employees.

Pioneer Food Group Limited
Company typeSubsidiary
HeadquartersBellville, City of Cape Town, South Africa
Area served
Southern Africa, Nigeria, United Kingdom
Key people
TA Carstens CEO, ZL Combi Chairman, Felix Lombard CFO
ProductsBokomo Cereals, SASKO Flour & Bread, White Star Maize Meal, Ceres Fruit Juices, Liqui-Fruit, Spekko rice, Safari dried fruit & nuts
RevenueIncrease R 18,748 million (2015)
Increase R 2,153 million (2015)

The Pioneer Foods brand portfolio includes Bokomo cereals, Liqui-Fruit, Ceres Fruit Juice, SASKO bread, Safari dried fruit & nuts, Spekko rice and White Star maize.

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