Page 64 - Food & Drink Business Nov-Dec 2019

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It is expected to occur in calendar year 2020.
The merger will create Australia’s largest integrated drinks and hospitality business, it said. Endeavour Group will consist of 1500 BWS and Dan Murphy’s retail drinks outlets, and 327 ALH hotels. ALH retail drinks outlets currently make up approximately 35 per
cent of Woolworths Group retail drinks sales, with 86
Dan Murphy’s and 512
BWS stores owned
by ALH at the end
of March 2019.
Sales are expected
to be around $10
billion and EBITDA
of $1 billion.
HONG KONG FIRM
BUYS CRAVEABLE BRANDS
Craveable Brands, operating Red Rooster, Oporto and Chicken Treat stores across Australia and Asia, was sold to PAG Asia Capital, the Hong Kong based private equity buyout arm of investment firm PAG.
It acquired the company from Archer Capital and minority shareholders. In a joint statement, Archer Capital managing partner Peter Gold said: “Since our investment in 2011 we have been successful in building this business to approximately $800m of network sales annually... We look forward to seeing the business expand and prosper under PAG’s ownership.”
AB INBEV DROPS IPO, SELLS CUB
Asahi Group Holdings bought Carlton & United Breweries (CUB), an Australian subsidiary of Anheuser-Busch InBev, for $16 billion. The divestiture of
CUB will go towards paying down AB InBev’s
debt. The company is aiming to reach a net debt to EBITDA target
ratio of below 4x by the end of 2020, regardless of the
completion of this transaction.
The sale to Asahi came off the back of AB InBev pulling out
of its IPO on the Hong Kong Stock Exchange due to “prevailing market conditions”, and is expected to be completed early next year.
AMATIL, MADE GROUP STRIKE NEW DISTRIBUTION DEAL Made Group agreed to a new
distribution deal with Coca-Cola Amatil, which would see its beverage
brands Rokeby Farms and Impressed expand
into 50,000 restaurants, cafes and convenience stores around the country.
The latest distribution agreement followed
Amatil and The Coca-Cola Company’s
joint acquisition last October of 45 per cent of Made Group.
Amatil managing director for Australian beverages, Peter West said: “There is a continuing market trend toward healthier choices in beverages. We’ve heard the message on consumer wellbeing, and we’re delivering with a broader range of options.”
SNACK BRANDS OWNER MAKES DEAL WITH INTERSNACK Philippines-based food and beverage company and owner of Snack Brands Australia, Universal
Robina Corp,
and
German-
based snack
food maker
Intersnack
Group announced a strategic partnership. The deal would see URC to sell 40 per cent of its consolidated business in Australia and New Zealand to Intersnack.
The value of the deal is not known, but was a mix of cash and shares in Intersnack’s Australian brand Yarra Valley Snack Foods.
The deal was struck through URC’s wholly owned British Virgin Islands subsidiary URC Oceania Company to drive operational growth and efficiencies in the region and give URC access to the European market.
KELLOGG’S AGREES TO
SOLAR POWER IN NSW ✷ Kellogg’s signed a power purchase agreement (PPA) with Beryl Solar
Farm for the next seven-and-a-
half years, which will see it source
all its energy requirements for its
NSW manufacturing operations
from solar power.
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64 | Food&Drink business | November-December 2019 | www.foodanddrinkbusiness.com.au
Based on 2018 production data, the PPA will offset the amount of energy needed to produce around 630 million boxes of cereals for the duration of the agreement, the company said.
The PPA allows Kellogg’s to offset its Australian manufacturing carbon impact and will assist in its broader sustainability commitments.
It will reduce its carbon dioxide emissions by roughly 139,000 tonnes over the life of the agreement.
WELLMAN LAUNCHES ANZ FIRST RECYCLED SQUEEZY SAUCE BOTTLE
Wellman Packaging, the Sydney-based manufacturer of rigid plastics packaging, has launched itself into the sustainability spotlight, announcing a new ‘squeezy’ sauce bottle comprising 90 per cent food-grade recycled polyethylene plastic.
The innovation comes after two years of intensive work by the company, together with its
supply partners, to develop the proprietary
processes and polymer technologies required. The
result is a squeezy condiment bottle
believed to be a first in the Australian and New
Zealand markets. Wellman Packaging has
launched the technology together with a new proprietary hot-fill ‘torpedo’ Squeezy Sauce Bottle design suitable for condiments and sauces.
“It has improved features like better stability and brim-fill among others. Contrary to the belief that recycled plastics are bad, in this case we have a better bottle because of it and most importantly, we have been able to ensure complete integrity over the food grade quality of the new technology,” Wellman said.
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NESTLÉ CLOSES FACTORY IN REGIONAL VICTORIA Nestlé announced the closure of its Tongala factory in far northern Victoria.
Over the next 12 to 18 months, all production at the factory will progressively move, mostly to Nestlé factories overseas, with final closure anticipated between late 2020 and mid 2021.
The plant primarily produced tinned milk products. Nestlé said it had tried to improve the viability of the factory through new product ranges, adding Maggi culinary products from 2010, Nestlé Health Science medical nutrition
products from 2012 and Milo Ready To Drink since 2017.
Following the closure, the site will be vacated and
sold. Equipment currently at the site is either owned by Nestlé or leased, and as it will be relocated, will not be part of the sale.
WORLD FIRST: COLD PRESSED RAW MILK Australian company Made By Cow launched the world’s first cold pressed raw milk. Using its new, patented method, approved by the NSW Food Authority, Made By Cow uses milk from a single Jersey herd on the New South Wales south coast.
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