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Last year, Vegemite's sales in Australia were $78.5 million, down from $86.9 million in 2011. Barry Irvin, Bega Cheese's executive chairman, attributed the recent declines to changing breakfast habits. He described Vegemite and ladies bikinis Bega as a natural fit: Cheese and Vegemite are a popular taste combination on sandwiches. "The wonderful heritage and values that Vegemite represents and its importance to Australian culture makes its combination with Bega Cheese truly exciting," Irvin said in a statement. Bega shares rose on the news on the Australian market in early trading Thursday more than 5 percent from AU$4.84 to AU$5.09. Mondelez had licensing rights for Kraft's products overseas after it split with Kraft Foods in 2012. Mondelez says it is holding onto Philadelphia cream cheese in Australia. The sale also includes other local Australian grocery products, peanut butter and salad dressings that use the Kraft name under licensing. Bega Cheese makes Kraft cheeses for Mondelez and was looking for opportunities to grow beyond dairy. The diversification "adds stability to Bega Cheese," Irvin said. Michael Mitchell, a Mondelez spokesman, said about 200 employees will be offered roles "on comparable terms" with Bega Cheese.
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