Page 8 - Food&Drink Magazine Aug-Sep 2021

NEWS
Marquis
invests $35m
MACADAMIA business Marquis Group is investing $35 million in production capacity and pasteurisation technology across its operations.
It will increase processing capacity from 12,000 to 15,000 tonnes annually and create up to 40 jobs at its Bundaberg facility.
Marquis will spend $30 million on new cold storage, and specialised drying and packing facilities at its Bundaberg processing facility in Queensland.
It is in addition to its announcement in April that $13.5 million was going to be spend on expanding the site.
The company was founded in 1983 but was consolidated and rebranded as Marquis Group in February 2020, forming the world’s largest macadamia processor and marketer.
Marquis Group CEO Larry McHugh said continued investment in technology was vital as thousands of hectares of macadamia nuts the company has planted set to double macadamia supply within the next four to five years.
“We expect global macadamia supply to increase from roughly 220,000 tonnes to 440,000 tonnes annually by 2025-2026. In 2020 alone we saw around 3000 new hectares planted in Australia and 5400 new hectares in South Africa,”McHughsaid. ✷
Peak seaweed body launched
A target of $100 million in production by 2025 is the catalyst for the newly formed Australian Sustainable Seaweed Alliance (ASSA). The federal government has also boosted its investment, injecting $59 million into the Marine Bioproduct Cooperative Research Centre over the next 10 years.
ASSA was formed by the Australian Seaweed Institute, CH4 Global, FutureFeed, and the University of Tasmania, with support from AgriFutures Australia.
ASSA chair and Australian Seaweed Institute CEO Jo Kelly said the group invited current – and future – seaweed investors, farmers, and product makers to join.
“Our vision for the Australian seaweed industry is for a high tech and high value, sustainable industry to support thriving oceans and coastal
communities,” Kelly said. University of Tasmania
associate professor Catriona Macleod said: “It is essential that we fast-track the R&D needed to really show the potential in seaweed aquaculture and products. ASSA is key to making sure that research efforts are strategic, and that funding and resources are optimised – which is essential if we really want to kick-start this industry.”
ASSA’s focus is to work with industry members, government, and research agencies to coordinate the establishment and growth of sustainable seaweed aquaculture. While new to Australia, the sector is well established internationally, particularly in Asia.
In 2020, AgriFutures released the Australian Seaweed Industry Blueprint that outlined plans for a $1.5 billion Australian seaweed
ASSA chair and Australian Seaweed Institute CEO Jo Kelly
industry. It said there was a $100 million opportunity for seaweed production over the five years to 2025, with potential to reach the $1.5 billion target in the next 20 years.
“Seaweed offers a huge opportunity for Australia’s sustainable ocean economy and regional economic development,” Kelly said. ✷
Mealtime for HelloFresh
MEAL kit company HelloFresh has entered a scheme of arrangement with ready meal specialist Youfoodz to buy 100 per cent of the company for $125 million.
The proposed sale doesn’t leave Youfoodz shareholders hungry, with the proposal offering $0.93 per share, 82 per cent higher than its last close at $0.51 cents.
That said, investors who bought shares at $1.50 in Youfoodz’s initial public offering in December 2020 are still running at a loss with shares never trading above the issue price.
Youfoodz will continue to operate under its own brand with founder and CEO Lance Giles staying at the helm.
The company’s largest shareholder RGT Capital (with a 57.4 per cent stake) said it supports the deal.
Giles said the deal would combine HelloFresh’s expertise in supply chain management, technology and D2C marketing with Youfoodz reputation for healthy and fresh ready meals.
“Joining the HelloFresh group is a significant endorsement of our brand and the success we have enjoyed as a business in the ready-made meal sector.
Partnering with a global leader like HelloFresh will help us accelerate growth of our business and enhance our customer offering through new menu offerings, customer initiatives and enriched service levels,” Giles said
D2C GROWTH MARKET
HelloFresh ANZ CEO Tom Rutledge said the acquisition is part of the company’s strategy to become a global leader in the D2C food solutions market.
In Australia, the local ready meal market is set to grow from around $6 billion in 2020 to
$9 billion in 2025, with around $2.3 billion of that being the chilled food market.
Within that market, 30 per cent is expected to come from the B2C sector.
“We are impressed by Youfoodz’ strong product and manufacturing capabilities,” Rutledge said. ✷
8 | Food&Drink business | August/September 2021 | www.foodanddrinkbusiness.com.au