Australian food company George Weston Foods has announced that it has signed an agreement to sell three of its leading chocolate biscuit brands to US-owned Arnott’s Biscuits.
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Arnott’s will acquire Wagon Wheels, Quatro and Chocolate Wheaten as part of the agreement, which is subject to approval by the Australian Competition and Consumer Commission, George Weston said in a statement.
George Weston, a wholly owned subsidiary of the UK’s Associated British Foods (ABF), said it is selling the brands as a result of a review it undertook earlier this year, which showed its biscuit business is not viable in its current format.
Arnott’s general manager Peter West said the appeal of the brands was not due to their market share.
“In terms of market share, combined, they represent a very small amount,” said West.
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By GlobalData“The appeal for us lies in the strong attachment consumers have to the products, particularly Wagon Wheels.”
“We plan to produce the biscuits at our New South Wales and South Australian bakeries, so that means more jobs at those sites,” West added.
George Weston confirmed the future of its other biscuit brands was still under review.
