Flora Food Group Sells Off Latin American Business to Alicorp for $151M
As it tables acquisition offers for its international business, plant-forward dairy leader Flora Food Group has completed the $150.5M sale of its Latin American operations (excluding Mexico and Brazil) to CPG giant Alicorp.
Flora Food Group, the maker of Country Crock, I Can’t Believe It’s Butter! and Violife, has sold its business in Latin America to Peruvian CPG behemoth Alicorp.
The transaction, worth $150.5M, was first announced in March and includes 19 brands in seven countries – Guatemala, Panama, the Dominican Republic, Colombia, Ecuador, Peru and Chile – plus distribution arrangements across around 30 territories in Central and South America and the Caribbean. It also entails Flora Food Group’s production facility in Cali.
Flora Food Group has retained its business in Mexico and Brazil, the region’s two largest markets. This comes as its parent, investment firm KKR, explores a full sale of the international business for as much as $10B, after a revival in dairy demand led the manufacturer to forego its promise to turn its entire portfolio plant-based.
Flora Food Group employees to retain roles under Alicorp
Having been around for 70 years, Alicorp is Peru’s largest consumer goods company. It’s owned by Grupo Romero and has operations across South America through brands like AlaCena sauces, Primor oils, and Don Vittorio pasta.
Flora Food Group (formerly Upfield) is based in the Netherlands and owns some of the world’s largest alternative dairy brands. For instance, Violife holds 22% of the European market share for vegan cheese and is the leader in the US as well.
The business houses its namesake Flora brand, olive oil maker Bertolli, as well as non-dairy cream, butter and margarine labels Country Crock, Elmlea, Becel, I Can’t Believe It’s Not Butter!, Rama and Stork. Plus, it has an ongoing partnership with Gordon Ramsay.
The sale to Alicorp includes a mix of transferred and licensed brands, such as Rama in Colombia, Bonella and Dorina in Ecuador, La Perfecta in Panama, and Dorina and La Danesa in Peru. Moreover, it involves exclusive distribution rights for the Country Crock label (among others) across Central America and the Caribbean.
Alicorp will also absorb Flora Food Group’s facility in Cali, which will supply not just the Colombian market, but its operations in Ecuador, Peru, and Panama as well.
The transaction will see employees in commercial, marketing, supply chain, and operational roles move into Alicorp, with both firms working to ensure the continuity of employment terms. The new owner said the expertise of the manufacturing teams will be pivotal in the business’s new phase.
The sale has been structured to maintain seamless business operations, with a transition period that will see the two companies work together on existing commercial and licensing arrangements, contacts and service standards.
KKR kicks off international sale process of Flora Food Group
Flora Food Group’s roots date back over 150 years to the company that popularised margarine. Dutch industrialist Antoon Jurgens bought the margarine patent from its founder in 1871, and after a series of mergers, his company evolved into Margarine Unie in 1927. Two years later, it joined forces with soap maker Lever Brothers to form Unilever, which went on to become the multinational behemoth it is today.
As margarine started falling out of favour for butter (a trend reflected in Unilever’s bottom line), the British company faced an (ultimately aborted) takeover attempt by Kraft Heinz in 2017. Soon after, to boost its returns, Unilever placed the spreads division – which represented 7% of its business – on the market.
The move fuelled a bidding war among prospective buyers, including Apollo Global Management, CVC Capital Partners and Bain Capital; KKR eventually emerged with the winning offer. Since then, despite a correction in the plant-based market, Flora Food Group’s turnover has remained steady.
It generated €3B in net sales last year, with a 1% compound annual growth rate between 2019 and 2025. However, it is highly indebted, with a debt-to-EBITDA ratio of about 7.5x, according to Fitch Ratings analysis cited by the Financial Times. EBITDA is a measure of revenue that excludes all non-operational and one-time expenses.
Flora Food Group said it regularly reviews whether it is the best owner for each of its businesses and concluded that Alicorp’s “deep regional expertise, scale and long-standing knowledge of these operations as a former third-party partner” makes it a better investor in this category over the long term.
Separately, KKR has reportedly kicked off a process to find buyers for the global Flora Food Group business, with Qdoba and Wagamama owner Apollo Global Management, Kar’s Nuts parent Capvest, and Tassimo owner OneRock all rumoured to be in the mix.