Mondelez sells Vegemite to Australian company for $345 million

Vegemite and other grocery products are being sold by Deerfield-based Mondelez to an Australian cheese company Bega Cheese Limited in a deal worth about $345.3 million (460 Australian dollars).

Mondelez says it's selling most of its grocery business in Australia and New Zealand to focus on snacks like Oreo and chocolate like Cadbury.

Amanda Banfield, vice president of Mondelez's Australian unit, says in a statement that Vegemite is "part of the fabric" of Australia. The spread was introduced in the 1920s.

Also included in the sale are other local Australian grocery products, and products that use the Kraft brand under licensing. Mondelez had licensing rights for those products overseas after its split with Kraft Foods in 2012. Mondelez says it is holding onto Philadelphia cream cheese in Australia.

Included in the sale are Vegemite, ZoOsh, Bonox - and other products that use the Kraft brand under license, such as peanut butter, nut spreads, processed cheese slices, ambient cheese spread, Bega will receive a license to the Dairylea brand for use in Australia and New Zealand. The Philadelphia business is not included in the deal as it is a Mondelēz International Power Brand.

"We believe these iconic brands alongside the Bega Cheese brand are strong building blocks to enable Bega Cheese to become a great FMCG business," said Bega Cheese Executive Chairman Barry Irvin