PIONEER FOOD GROUP LIMITED - Voluntary announcement - Pioneer Foods and FUTURELIFE announce joint venture to unlock new product opportunities

Voluntary announcement - Pioneer Foods and FUTURELIFE announce joint venture to unlock new product opportunities

Pioneer Food Group Limited
(Incorporated in the Republic of South Africa)
(Registration number: 1996/017676/06)
(Share code: PFG)
(ISIN code: ZAE000118279)
(“Pioneer Foods” or “the Company”)

Voluntary announcement - Pioneer Foods and FUTURELIFE announce
joint venture to unlock new product opportunities

Shareholders are hereby advised that Pioneer Foods has entered
into an agreement to acquire a 50% shareholding in FUTURELIFE
Health Products (Pty) Ltd, a scientifically formulated
nutrient-dense functional food products company, for an
undisclosed purchase consideration.

The transaction allows Pioneer Foods, which houses well-known
brands such as Weet-Bix, Bokomo, Liqui-Fruit, Sasko and White
Star, to complement its existing product portfolio with the
addition of one of South Africa’s fastest growing health
brands within the functional foods category, in which Pioneer
Foods is not currently represented.

The joint venture provides an opportunity for both companies
to combine their expertise in both the food and beverage, and
functional foods sectors in order to explore profitable
categories outside of their respective traditional markets,
and to unlock new product opportunities that may otherwise not
be accessible to either company.

“As a leading FMCG company, innovation is at the core of our
business. This joint venture with FUTURELIFE, an industry
leader in the functional foods category, provides Pioneer
Foods with an opportunity to shape a winning brand portfolio
by fast tracking product innovations and developing new
product categories,” said Phil Roux, CEO of Pioneer Foods.

Founder and CEO of FUTURELIFE Paul Saad said the joint venture
is set to be a win for the South African consumer: “Combining
Pioneer Foods’ scale and experience in the food and beverage
market together with our functional food expertise in creating
the first smart food formulated range of products will result
in exciting new health choices for the consumer.”
The transaction is subject to a number of conditions
precedent, which are standard for a transaction of this
nature, including Competition Commission approval.

Paul Saad, Founder and CEO of FUTURELIFE, will lead and manage
the joint venture.

Bellville
23 April 2015

Sponsor and corporate adviser
PSG Capital

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