Kraft Heinz weighs up sale of Complan in India
20 Jun 2018 --- Kraft Heinz is sizing up the potential sale of children’s milk brand Complan in India, according to reports which claim a deal could be worth around US$1 billion. Although there is no official comment from Kraft Heinz on a potential sale, Bloomberg sources have said that a deal could be on the cards as Kraft Heinz is working with an adviser to gauge interest in the brand from potential buyers.
According to those unnamed sources, the brand could attract local companies and private equity firms. However, deliberations are at an early stage and Kraft Heinz could decide to keep the business.
Arun Kejriwal, founder of Kejriwal Research & Investment Services Pvt. in Mumbai, tells Bloomberg that overseas companies selling health drinks are facing more intense competition.
“India could be among the fastest growing markets for health drinks, but there are challenges including heightened regulatory hurdles,” he is quoted as saying. “Multinational companies either want to sell off before they face regulatory challenges or want to strengthen their portfolio to fight local health food and beverage companies.”
Glaxo launched Complan in 1954 as part of Glaxo's Farley Health Products subsidiary. While the Complan UK brand was sold to Boots in 1988, in India, Complan remained with Glaxo until 1994 when it was acquired by Heinz, who also acquired the UK brand in the same year.
Earlier this week there was growing speculation that several potential bidders have held early talks regarding the sale of malted milk hot drink Horlicks with Coca-Cola reportedly leading the charge with a £3 billion (US$4 billionn) bid in view. Other interested parties reportedly include Kraft Heinz and Nestlé.
This follows a major UK review last July when GlaxoSmithKline (GSK) announced it was making strategic decisions concerning its consumer healthcare business and pharmaceuticals, including options to divest some nutrition brands and its intention to sell its Horlicks brand in the UK.
