South Africa's Woolworths buys longtime supplier in2food (updated)

Woolworths

17/03/2026 09:05

Adds details from paragraph 2 onwards

By Nqobile Dludla

JOHANNESBURG, March 17 (Reuters) - Woolworths WHLJ.J said on Tuesday it has agreed to acquire privately held in2food Holdings for an undisclosed amount as the food and clothing retailer aims to better control the quality and supply of its premium convenience food products.

The move reflects a wider trend of retailers tightening supply-chain integration to bolster resilience amid persistent cost pressures and logistics risks.

The South African company will buy 100% of its longtime supplier from the firm's founders, Old Mutual Private Equity, and other shareholders, it said in a statement.

It expects its latest acquisition to boost its earnings immediately, Woolworths said, even before possible cost savings or improvements are realized. The purchase price will be settled in cash, using the company's existing funding facilities.

In2food is central to Woolworths' reputation for high-end, readymade meals, one of the retailer's strongest profit drivers.

The acquisition underscores Woolworths' push to secure and control a critical part of its fast-growing convenience foods supply chain as competition in South Africa's premium grocery market intensifies.

Woolworths Group CEO Roy Bagattini said the acquisition strengthens a three-decade partnership between the companies and will bring a "key strategic capability closer to the Woolworths Foods business."

Richard Cooper, CEO of in2food, said the deal further enhances Woolworths' "ability to protect product quality, innovation and availability."

The food producer is one of Woolworths Foods' largest suppliers and generates more than 5 billion rand ($299 million) in annual revenue from its private‑label convenience meals, fresh produce, long-life products and bakery items.

While Woolworths is its biggest customer, in2food also supplies to local and international clients such as Marks and Spencer MKS.L in the food service and wholesale markets.

The management team at in2food will remain in place and continue to run the business as a standalone unit within Woolworths, the retailer said.

Bagattini said the transaction did not mark a shift in Woolworths' wider sourcing model, saying the retailer's supplier relationships remain core to its differentiated food offerings.

($1 = 16.7156 rand)

 (Reporting by Nqobile Dludla in Johannesburg and Tuhina in Bengaluru; Editing by Pooja Desai)

 ((tuhina@thomsonreuters.com))