Woolworths Holdings Limited is taking a significant step to deepen its control over its premium food offering, announcing plans to acquire 100% of prepared foods manufacturer In2food, a long-time supplier closely tied to the retailer’s food business.
The acquisition, which will see Woolworths purchase In2food from its founders, Old Mutual Private Equity and other exiting shareholders, aims to bring one of the retailer’s most critical production partners closer to its core operations.
Insights first detailed by BusinessTech outline how the deal forms part of Woolworths’ longer-term strategy to reinforce differentiation through food quality and innovation.
The relationship between Woolworths Foods and In2food stretches back more than 30 years, evolving alongside changing consumer expectations and retail trends.
In2food itself emerged in 2010 through the merger of Interfruit and Lombardi Foods, growing into a market-leading producer of convenience meals, fresh produce, bakery goods, and long-life food products.
Today, the company generates annual revenue exceeding R5 billion, supplying a diversified range of premium private-label products.
While Woolworths Foods remains its largest customer, In2food also serves local and international clients across foodservice and wholesale markets.
Woolworths Group CEO Roy Bagattini described the acquisition as a natural progression of an already close collaboration.
‘Woolworths and In2food share a more than three-decade history of partnership in creating products of outstanding quality and innovation to meet the evolving needs of our customers.’
He added that bringing the supplier closer to the business strengthens a key competitive advantage within Woolworths’ premium food strategy.
Despite the ownership change, In2food will continue operating as a standalone business under its existing leadership team, a move designed to preserve operational stability and industry expertise.
In2food CEO Richard Cooper emphasised continuity, noting: ‘Woolworths and In2food have an extended track record of close collaboration, focused on delivering high-quality, innovative food products aligned with Woolworths Foods’ premium positioning.’
The retailer clarified that the acquisition does not signal a shift away from its broader supplier network. Instead, the transaction is positioned as an enhancement of an already successful partnership model.
Bagattini highlighted this point, saying: ‘Our unique relationship with our suppliers is what differentiates us and is fundamental to delivering our premium food offering.’
The company expects the acquisition to be earnings accretive, even before operational efficiencies are realised over time. The purchase will be funded through existing financing facilities and settled in cash.
Completion of the deal remains subject to regulatory and commercial conditions, including approval from South Africa’s competition authorities.
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