Leslie Massey
Kraft peanut butter has been a staple in Australian households since 1926. However, in 2017, Kraft sold its peanut butter business to Bega Cheese Limited, an Australian company, for USD 460 million. This deal included the sale of the recipe, factory, and rights to the Kraft peanut butter line. Kraft continued to sell peanut butter in Australia under the brand name 'The Good Nut', but this product has since disappeared from the market. Bega Cheese now produces Australia's favourite peanut butter, employing local Aussies and using locally sourced and imported ingredients.
| Characteristics | Values |
|---|---|
| Ownership | Kraft Peanut Butter was sold to Bega Cheese Limited in 2017 |
| Manufacturing | Kraft Peanut Butter is manufactured in Australia |
| Ingredients | Kraft Peanut Butter contains less than 10% Australian ingredients |
| Packaging | Kraft Peanut Butter was sold with yellow packaging, which Bega believed they had bought the rights to |
| Rebranding | Kraft Peanut Butter has been rebranded as The Good Nut |
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What You'll Learn
Kraft peanut butter rebranded as The Good Nut
Kraft peanut butter has been a staple in many Aussie households since 1926. However, in 2017, the Kraft logo began to disappear from Vegemite jars and other products, including Kraft Singles, which were replaced with UK brand Dairylea Slices. Kraft peanut butter was also rebranded and renamed "The Good Nut".
The rebranding was due to a series of takeovers that meant that in Australia, Kraft products were no longer owned by US-based Kraft. Kraft sold its peanut butter business to Bega Cheese Limited, an Australian company, as part of a deal worth $460 million in 2017. This deal included the sale of the recipe, the factory that produced it, and the rights to the yellow packaging. Bega Cheese announced its case against Kraft in the High Court, with a confidential agreement understood to include a payment of $9.25 million to Bega.
Despite the change in ownership and branding, the peanut butter itself has remained largely the same. Bega has assured Australians that the peanut butter they know and love will remain the same, with only a slightly 'refreshed' packaging design. This has been confirmed by employees of the factory, such as Charlie Luvara, who has worked at the Port Melbourne Peanut Butter factory for over 18 years. Luvara admits that he was nervous when he heard the factory would be sold, but is now happy that his job is safe and that he can continue to support his family.
Some have raised concerns that the removal of the familiar Kraft logo and name will confuse customers and cause sales to suffer. Dr Dean Wilkie, a University of Adelaide marketing expert, commented that "the Kraft name symbolises familiarity" and that removing it could cause customers to think they are buying an Aldi-style copycat product. However, Bega has a pipeline of new product development in the works and is excited to share its vision for the future with Australia.
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Kraft peanut butter is now owned by Bega
The transition to Bega ownership occurred in 2017, and with it came a slight refresh of the Kraft peanut butter packaging. Bega assured Australians that despite the label change, the peanut butter itself remained the same. This was welcomed news to employees of the factory, such as Charlie Luvara, who shared his relief that manufacturing would not move offshore, allowing him to keep his job and continue supporting his family.
The decision to remove the Kraft brand name was due to a series of takeovers that meant, in Australia, the products were no longer owned by US-based Kraft. Kraft Foods is worth more than $12 billion globally, and its products had become a staple in Australian households since 1926. However, despite the Kraft name and logo being phased out, the products themselves remained.
Bega has since continued to develop new products, sharing its vision for the future of peanut butter in Australia. The acquisition of the Kraft Peanut Butter factory by Bega Cheese Limited ensured that this iconic Australian product remained in Australian hands.
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Bega paid Kraft $9.25 million
Kraft peanut butter has been a staple in Australian households since 1926. However, the Kraft logo was removed from Vegemite jars and other products in 2017, and Kraft peanut butter was rebranded as The Good Nut. This was due to a series of takeovers that meant the products were no longer owned by US-based Kraft.
Bega Cheese Limited, an Australian-owned company, acquired the former Kraft Peanut Butter factory, keeping production in Australia. Bega refreshed the packaging and assured consumers that the peanut butter would remain the same.
However, Bega and Kraft became locked in a legal dispute over Bega's use of its current packaging, specifically the distinctive yellow label and lid. Kraft disputed Bega's right to use this packaging, which was similar to its own. The dispute was resolved in 2021, with Kraft agreeing to pay Bega $9.25 million in a confidential settlement regarding monetary relief and legal costs. Bega won the right to use its current trade packaging for its peanut butter products.
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Bega took over the former Kraft peanut butter factory
Kraft peanut butter has been a staple in many Australian households since 1926. However, the Kraft name and logo were set to disappear from products in Australia by the end of 2017. This was due to a series of takeovers that meant that, in Australia, Kraft products were no longer owned by US-based Kraft. Kraft peanut butter was rebranded as The Good Nut, and the factory that produced it was sold to Bega Cheese Limited as part of a $460 million deal in 2017.
Bega Cheese Limited is an Australian-owned company that acquired the former Kraft Peanut Butter factory, keeping production in Australia. Bega purchased the factory, the recipe, the logos, and the branding as part of the deal. This meant that many jobs were protected, as manufacturing was not offshored.
Following the acquisition, Bega refreshed the packaging of the peanut butter, which is now sold in Australian supermarkets. Bega has also developed a pipeline of new products and shared its vision for the future with Australia.
Despite the label change, Bega assured Australians that the peanut butter would remain the same great-tasting product that they had been buying for the past 55 years. Bega's acquisition of the former Kraft Peanut Butter factory has allowed the company to expand its product offerings and continue to support local Australian businesses and jobs.
It is worth noting that, while Bega purchased the rights to the yellow packaging, Kraft initially continued to sell its peanut butter in Australia using the same colour scheme. This led to a legal dispute, which Bega won in the federal court. The dispute was settled in the High Court, with Kraft agreeing to pay Bega $9.25 million.
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Kraft peanut butter is made with local and imported ingredients
Kraft peanut butter has been a beloved staple in many Australian households since 1926. However, in 2017, Kraft sold its peanut butter business to Bega Cheese for $460 million. This deal included the factory, recipe, logos, and branding. Despite the change in ownership, Kraft peanut butter continues to be made with local and imported ingredients.
The new owners, Bega Cheese, proudly state that their peanut butter is "made in Port Melbourne with imported and local ingredients." However, it has been revealed that their peanut butter contains less than 10% Australian ingredients. This is not uncommon, as many peanut butter products made in Australia use only a small proportion of Australian-grown peanuts or none at all.
Kraft's No Added Salt or Sugar Peanut Butter, for example, is made with locally grown and imported ingredients. While the exact sources of these ingredients are not disclosed, it is known that the peanut butter contains naturally bred Hi Oleic peanuts sourced from the Peanut Company of Australia. This variety of peanut butter has a higher percentage of peanuts than the original, with 91% lightly roasted peanuts.
The use of local and imported ingredients in Kraft peanut butter allows the company to create a product that meets the taste preferences and nutritional needs of its Australian consumers. The inclusion of local ingredients, such as Australian-grown peanuts, ensures a familiar and trusted flavor profile. At the same time, the use of imported ingredients allows the company to incorporate different varieties of peanuts and additional components to enhance the taste and nutritional value of the product.
The decision to use both local and imported ingredients in Kraft peanut butter is a strategic choice that allows the brand to maintain its popularity in the Australian market while also staying true to its commitment to health-conscious consumers.
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Frequently asked questions
Kraft peanut butter was made in Australia, but it was rebranded as The Good Nut in 2017. The Kraft logo was removed from the packaging, and the product was sold to Bega Cheese Limited.
Bega Cheese Limited bought the Kraft peanut butter factory, recipe, logos, and branding. The product is now made with Australian ingredients, and the packaging has been refreshed.
Kraft peanut butter is no longer available in Australia. The product has been rebranded as The Good Nut, and Kraft no longer features peanut butter in its online product range.
