Page 6 - Food & Drink Magazine October 2019

NEWS
Saputo clears hurdle for Lion Dairy acquisition
THE Australian Competition and Consumer Commission (ACCC) will not oppose the proposed acquisition of Lion Dairy & Drinks’ Tasmanian-based cheese business by Saputo Dairy Australia.
The competition regulator
said after consultation with “many farmers and other interested parties”, it did not think the deal would substantially lessen competition.
ACCC deputy chair Mick Keogh said: “We looked very closely at the transaction because it will combine the processing plants
of the second and third biggest raw milk buyers in Tasmania.”
In April, Saputo announced it had entered an agreement with Lion Dairy & Drinks to acquire its speciality cheese business for $280 million. It would see Saputo acquire Lion’s Tasmanian cheese
processing plants, located in Burnie and King Island, as well as Lion’s cheese brands, including South Cape, King Island Dairy and Tasmanian Heritage.
Saputo currently owns a milk processing plant in Smithton, Tasmania. In Australia, the company produces dairy products including cheese, fresh milk, butter, cream and milk powder.
“Ultimately, and on balance, we do not think this acquisition is likely to have the effect of substantially lessening competition,” Keogh said.
He also said the ACCC acknowledged that if there was a significant degree of any further consolidation of dairy processors in the state, it would cause “significant concern”. ✷
ACCC opposes ready meals deal
THE Australian Competition and Consumer Commission (ACCC) has rejected the proposed acquisition of Jewel Fine Foods by B&J City Kitchen.
On 26 April, Jewel went into administration with KPMG appointed administrators.
The company manufactures private-label and branded chilled, frozen, and ambient ready meals, as well as soups, breads and fried snacks.
B&J City Kitchen is 77 per cent owned by Beak and
Johnston Holdings and 23 per cent by Woolworths Group. It supplies Woolworths, Coles, Metcash and Harris Farm.
The ACCC said the two companies were the largest manufacturers of chilled ready meals in Australia. ACCC chair Rod Sims said: “We believe that the proposed acquisition is likely to substantially lessen competition for the supply of chilled ready meals.
“If the proposed acquisition went ahead, then the two major
players in the market would be combined, concentrating manufacturing capacity into one business.
“Alternatively, a different buyer would then be able to compete strongly with B&J City Kitchen.”
KPMG Australia said the immediate sale of the business as a going concern was the best way to protect the interests of all stakeholders.
“Jewel Fine Foods is a strong player in the chilled ready meal market and there remain a number of parties interested
in acquiring the business. We remain confident that the business can be preserved and sold as a going concern,” it said.
B&J City Kitchen had not sought ACCC clearance when it proposed the acquisition.
For Sims, if a business or asset was being sold to a competitor, “particularly a close competitor” it was “critical” company executives understand it would “likely attract the attention”
of the ACCC. ✷
also have global relevance.” She said that since Dirk
Van De Put became CEO
in late 2017, and chair in April 2018, the company has had new growth strategies and consumer centricity, with a “very deliberate” approach to managing risk.
“There are going to be failures but they are also opportunities,” she said.
Wolf told Food & Drink Business: “Our goal is by 2020 to have $100 million dollars. That comes to life if we can create brands and businesses that meet consumers needs and address the market.” ✷
Mondele-z disrupts in
name of innovation
-
MONDELEZ SnackFutures
launched in 2018 as an independent and venture club for the company.
Head of SnackFutures Innovation (Global) Brigette Wolf sat down with Food & Drink Business at the inaugural Global Table last month to talk about the program and its Australian market hub.
Wolf said SnackFutures mission within Mondele-z International was “to disrupt big food”. -
Mondelez is asking itself, “How do we not just react to what’s going on, but anticipate what’s happening and help shape the future of snacking for consumers?”. -
The answer for Mondelez is, in part, about behaving
like a start-up – smaller, experimental, working closely with consumers and utilising social media.
“It is very different from
the classic big food model of product development ending in a huge reveal and crossing your fingers it works,” Wolf said.
“We are a huge $26 billion company with a lot of resources and great talent, but we don’t know everything and the world is moving much faster than anyone could have anticipated.
“By going deep into regions that are on the cutting edge of consumer, cultural and environmental trends we can build tailored ecosystems
to drive better, faster snack innovations that are hyper- focused on local consumers but
6 | Food&Drink business | October 2019 | www.foodanddrinkbusiness.com.au