Mondelez International is selling Vegemite and most of its other grocery brands in Australia and New Zealand to Australian dairy company Bega Cheese for $347m. Vegemite, a food spread made from leftover brewers’ yeast extract which is revered by its fans, is returning to the country wher it was founded over ninety years ago.

The deal is likely to please many Australians, who view Vegemite, which is marketed as being rich in vitamin B, with nationalist pride and complain about Australian brands, such as Foster’s beer, owned by foreign companies.

While it has many fans, the outgoing US president Barack Obama is not one and once complained that Vegemite was “horrible.”

Mondelez said the deal would mean it will be able to focus on core products like Oreo cookies and Cadbury chocolate.

Along with Vegemite, Bega is also purchasing Kraft-licensed brands, such as peanut butter, nut spreads and cheese slices, as well as Mondelezs ZoOSh salad dressing and Bonox beef extract brands. But the Philadelphia spread brand is not included in the deal.

The deal to sell off the brands comes just months after Mondelez International failed to takeover rival Hershey to create the world’s largest candy company.

“Were extremely proud of our history as the custodian of the Vegemite brand for over 90 years, transforming it from its local roots into a global icon thats synonymous with Australia," said Amanda Banfield, vice president Australia, New Zealand and Japan for Mondelez International.

"Its been a privilege stewarding this brand, which is found in almost every Australian household and is part of the fabric of the nation. As we continue to execute our strategic growth plan, with a keen focus on core snacks categories and global Power Brands, were excited to see Vegemite and these much-loved brands continue to grow and thrive under Begas ownership."

Bega Cheeses executive chairman Barry Irvin said: “We believe these iconic brands alongside the Bega Cheese brand are strong building blocks to enable Bega Cheese to become a great FMCG business.”

"We feel privileged to be taking on the responsibility and guardianship of one of Australias most loved brands, Vegemite, and look forward to working with the people at 1 Vegemite Way in Port Melbourne to continue the legacy of this great company."

Bega Cheese makes Kraft cheeses for Mondelez and has looking to grow its business beyond dairy.

Mondelez International shares were up 0.29 percent to $45.03 while Bega Cheese shares jumped more than five percent to $3.85.