Page 62 - Food&Drink Magazine November-December 2021

YEAR IN REVIEW
WOOLWORTHS’ $233M ANALYTICS BUY Woolworths Group increased its share of analytics firm Quantium from 47 to 75 per cent for $223 million and set-up a new business unit Q-Retail to deliver advanced analytics and commercialise retail products around the world.
Quantium founders and team members will retain a
25 per cent shareholding.
The company will become part of the Woolworths Group.
Woolworths acquired 50 per cent of the business in 2013 for roughly 420 million, in a deal which allowed the group and its suppliers to use the data for decisions across pricing, ranging and promotions.
✷ MAY
STUART IRVINE STEPS DOWN AS LION CEO
Beverage business Lion CEO Stuart Irvine announced his resignation after eight
years in the role. He said that it was the right time to step down, after the successful delivery of its transformation program, which saw the sale of Lion Dairy & Drinks to Bega, significant technological investment and diversification into craft beer and spirits.
Lion chair Rod Eddington said Irvine had led the business through a time of “unprecedented change” in the sector.
A2 MILK DOWNGRADES, APAC CEO RESIGNS
The a2 Milk Company announced its fourth profit downgrade in four months and the resignation of its Asia Pacific CEO Peter Nathan. Investors wiped $690 million off its market capitalisation as it revealed a blowout to more than $90 million in old stock provision, including the cost of disposing of excess inventory. a2 Milk said it was now targeting revenue for FY21 of $1.20-$1.25 billion, with the caveat “it will take some time to rebalance inventory levels and restore channel health”.
It said the challenging daigou market had resulted in excess and ageing inventory, with April sales well below the forecast. In February, the company outlined actions planned for 2H21 to address challenges, particularly in the daigou/reseller and cross border ecommerce channels (CBEC). These actions failed to deliver the significant improvements the company had hoped for.
Asia Pacific CEO Peter Nathan resigned after being with the company for 14 years.
BARAMBAH ORGANICS ACQUIRES FIVE:AM Queensland-based Barambah Organics acquired yoghurt business five:am from PZ Cussons. It will sit alongside Barambah’s
growing artisan portfolio offering “complementary geographies, channels and brand differentiation” for the business.
Founded in 2010, five:am produces organic yoghurts made from 100 per cent natural ingredients with production based in Carrum Downs, Victoria.
In October 2020, Tanarra Capital invested in
Barambah Organics with its founders retaining a significant shareholding.
ACCC CALLS FOR FEEDBACK ON WOOLIES, PFD DEAL Woolworths and PFD Food Services released a draft “behavioural undertaking”, which aims to maintain a “degree of separation and independence” if the retailer’s proposed acquisition of65percentofPFDwastogo ahead. It followed the Australian Competition and Consumer Commission outlining its preliminary competition concerns in September 2020.
The proposed $552
million deal was announced in August 2020 with $302 million for the 65 per cent equity interest, and $249 million for the distribution centres which would be leased back to PFD.
Woolworths and PFD released the draft undertaking in response to the ACCC’s concerns, outlining a degree of separation and independence between the two companies for three years after the acquisition.
Five peak bodies urged the ACCC not to greenlight the acquisition, calling out the retailer’s “track record of anti-competitive behaviour” and citing concern for the potential damage to small businesses in the
supply chain.
CHR. HANSEN NATURAL COLORS REBRANDS
Chr. Hansen Natural Colors will now operate under the name Oterra, effective immediately, as the company continues its transition to a standalone company.
The company rebrand will see the name change to the Latin word for earth, and follows several announcements from earlier in the year, including the company’s acquisition by investment organisation EQT, and its acquisition and investment in SECNA Natural Ingredients Group.
✷ JUNE
FREEDOM FOODS ORDERED TO US ARBITRATION Arbitration between Freedom Foods Group and Blue Diamond Growers will go ahead in the US after the Full Court of the Federal Court of Australia rejected Freedom Foods Group’s attempt to block the action. (See story in March headlines.)
FFG was appealing a trial court decision in March, which ruled the US arbitration go ahead. The Full Court rejected the appeal unanimously, 3-0.
In September 2020, Blue Diamond sued FFG for fraud and breach of the parties’ licence and distribution agreement. Blue Diamond contends that it had a contract with FFG to make, sell and promote its products in Australia and New Zealand and that Freedom Foods would not compete with Blue Diamond in those markets.
WOOLIES GETS ACCC TICK
The Australian Competition & Consumer Commission gave Woolworths Group the go ahead to acquire a 65 per cent stake in PFD Food Services, citing the transaction would not be likely to lessen competition.
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