Page 7 - Food&Drink Magazine May 2022

Bega: Covid costs to exceed $40m
Class action
NEWS
sees Deloitte
BEGA Cheese said costs directly related to Covid would exceed $40 million for FY22.
In a trading update, the company said it was expecting a normalised EBITDA of $175-$190 million.
In its 1H FY22 update, Bega said the impact of Covid would exceed $20 million, and while there had been some recovery in the market and easing of Covid-related costs, the full year EBIDTA impact would be double that.
The recent flooding events in Central Australia, Northern NSW, and Queensland, including rail services being cut added costs and further supply chain disruption, while the outbreak of war in Ukraine increased some input costs.
Ongoing lockdowns in China and the port of Shanghai being impacted have caused a level of
leave noumi
uncertainty about products destined for the mainland.
Earlier this week the Australian Food & Grocery Council CEO Tanya Barden said the food and beverage sector could no longer absorb the increased costs stemming from world events and subsequent inflationary pressure. (See story on page 5.)
Bega said it expected the costs and market disruptions would be confined to FY22.
Meanwhile, international dairy prices continue to strengthen, it said, with international commodity markets improving and 2H FY22 seeing a decrease in national milk production increasing competitionformilk. ✷
DELOITTE Touche Tohmatsu has told the Australian Securities & Investments Commission (ASIC) that, as auditor of noumi, it has a conflict of interest due to the class action proceedings being brought against it in relation to its role as the company’s auditor when it was operating as Freedom Foods Group. Deloitte ceased being noumi’s auditor on 13 April.
In January the class actions were combined into one.
Deloitte told ASIC it intends to plead a proportionate liability defence and identify noumi as a concurrent wrongdoer, and a defensive crossclaim against the company.
Noumi said it intends to vigorously defend all claims made against it in the proceedings. Its defence was due on 8 April 2022.
Noumi said it has started looking foranewauditor. ✷
Endeavour acquires Josef Chromy
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ENDEAVOUR Group has acquired Tasmanian winery Josef Chromy Wines to expand its Paragon Wine Estates fine wine portfolio. The sale is in partnership with Warakirri Asset Management.
Endeavour Group managing director and CEO Steve Donohue said the acquisition indicated the company’s interest and investment in Tasmania. The winery is just south of Launceston.
“Tasmania is currently the top performing Australian region for premium wines in our retail stores throughout the country.JosefChromyWinesis one of the most renowned Tasmanian wineries,
having produced
exceptional, cool climate
wines for almost two
decades,” said Donohue.
Endeavour Group will
Josef Chromy Wines joins Endeavour Group’s portfolio.
welcome more than 60 team members from Josef Chromy’s winery and cellar door to its operations in Tasmania, which has around 40 stores and pubs and 500 team members.
Endeavour Group will lease the winery, 61-hectare vineyard, restaurant and cellar door from Warakirri for the long term.
“We are always considering how to best deliver value to our shareholders through our growth strategy, and we already have significant experience successfully managing leasehold property assets thanks to our hotel and store networks,”Donohuesaid. ✷
www.foodanddrinkbusiness.com.au | May 2022 | Food&Drink business | 7