Woolworths plans full acquisition of in2food, strengthening supply chain control, boosting innovation, and enhancing premium food offerings through long-standing partnership.
Woolworths Holdings Limited (WHL) has revealed plans to acquire full ownership of in2food, a privately held producer of prepared and convenience food products. The acquisition will involve purchasing shares from the company’s founders, Old Mutual Private Equity, and other shareholders who are exiting the business. This move marks a significant strategic step for WHL as it aims to deepen its control over a key part of its food supply chain.
Based in South Africa, in2food is a major supplier of convenience food items and has long been one of the most important partners to Woolworths’ food division. The company generates annual revenues exceeding R5 billion, supported by a diverse product portfolio. Its offerings span freshly prepared meals, fresh produce, long-life packaged goods, ambient grocery items, and bakery products. Much of its output is sold under premium private label branding, aligning closely with Woolworths’ positioning in the retail market.
Woolworths Food remains in2food’s largest customer, reflecting the close operational and commercial ties between the two companies. In addition to this primary relationship, in2food also serves a broader client base that includes both domestic and international businesses operating within food service and wholesale distribution channels. This diversified customer network highlights the company’s scale and capability in the food manufacturing sector.
According to Roy Bagattini, the acquisition builds on a partnership that has spanned more than three decades. Over this period, both companies have collaborated to develop high-quality and innovative food products tailored to evolving consumer preferences. Bagattini noted that bringing in2food fully into the Woolworths group will strengthen a critical strategic capability, particularly in maintaining product quality and differentiation within its premium food offerings.
Despite the ownership change, in2food will continue to operate as a standalone business within the Woolworths structure. Its experienced leadership team will remain in place, ensuring continuity in operations while preserving the entrepreneurial culture that has contributed to its growth and innovation. Richard Cooper emphasized that the companies’ long-standing collaboration has consistently focused on delivering high-quality, innovative products aligned with Woolworths’ premium brand identity. He added that the acquisition will further enhance their ability to maintain product excellence, availability, and innovation.
Cooper also acknowledged the role of outgoing shareholders, particularly Old Mutual Private Equity, in supporting in2food’s expansion since 2015. Their involvement contributed to strengthening the company’s commercial discipline and strategic decision-making over the years.
Bagattini clarified that this transaction does not signal a broader shift in Woolworths’ sourcing strategy. The retailer will continue to rely on its network of supplier partnerships, which remain central to its differentiated market positioning. Instead, the acquisition is intended to deepen collaboration with one of its most innovative suppliers, creating additional value across the supply chain and for customers.
Financially, the deal is expected to contribute positively to Woolworths’ earnings even before anticipated operational efficiencies are realized. The purchase will be funded through existing financing facilities and completed in cash. However, the transaction remains subject to standard regulatory and commercial approvals, including clearance from South African competition authorities.
