Page 60 - Food&Drink Nov-Dec 2020

YEAR IN REVIEW
delayed the demerger of its APRIL EndeavourGroupbusinessuntil ✷
2021, following the impact of
the COVID-19 pandemic on
TREASURY WINE ESTATES CONSIDERS DEMERGER Treasury Wine Estates CEO Michael Clarke announced the company is considering a demerger of its Penfolds business into a separately listed company on the ASX by the end of CY21.
In January, Clarke announced a company-wide strategic review after an unexpected profit downgrade announcement following poor performance in its US markets wiped $3 billion off the company’s value and saw its share price drop by around
40 per cent.
Penfolds only accounts for
10 per cent of the company’s volume, but “well over half ” of its earnings, Clarke said. It has “unique resources and a differentiated execution focus compared to the remainder of our business”.
If completed, it is anticipated that the potential demerger would create a new top ASX 50-100 company listed on the Australian Securities Exchange for Penfolds and an ASX 100-150 company for new TWE (existing TWE without Penfolds brands and associated assets).
ACCC: ASAHI TO DIVEST BRANDS FOR ACQUISITION The ACCC said Asahi Group Holdings’ proposed acquisition of Carlton & United Breweries (CUB) could go ahead after Asahi has divested two beer and three cider brands – Strongbow, Bonamy’s and Little Green cider brands and the Stella Artois and
Beck’s beer brands.
The $16 billion acquisition
was originally proposed in July 2019. At the time Asahi
said it would acquire CUB’s
broad distribution network as well as benefits from a greater scale of operations in areas such as procurement.
ACCC chair Rod Sims said that while Asahi supplies only a “relatively small share” of beer sales in Australia, the ACCC was concerned the
acquisition would remove a rival capable of competing strongly against Lion and CUB.
In June, the acquisition was completed, following approval from the Foreign Investment Review Board (FIRB).
KEYTONE DAIRY’S $3.6M MANUFACTURING DEAL Keytone Dairy signed a long-term manufacturing agreement with Iovate Health Sciences Australia. It confirmed $3.6 million in opening orders, representing 143 per cent of Keytone’s total revenue for FY19. Iovate is a health and wellness company headquartered in North America, with offices in Canada, United States and Australia.
The opening orders under the new agreement with Keytone Dairy will see private label speciality branded high protein products distributed into China, as the strategic partnership continues to develop orders over the coming quarters, as well as help grow the business across multiple packaging formats and product ranges.
MAY/JUNE
ON THE COVER
Carman’s
How Carolyn Creswell leads Carman’s Kitchen when it’s “business
as unusual”.
INKBUSINESS.COM.AU
APRIL 2020
CHARTING A FOOD INDUSTRY LEADERSHIP STATE OF THE AUSSIE WASTE ROADMAP P16 IN COVID-19 P18 GIN NATION P24
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its business.
The Woolworths Group board
said the specific date was subject to ongoing review and made the decision “given the impact of the government directive to close hotels for an extended period and current financial market conditions”.
Woolworths announced plans to combine its drinks and hospitality ventures, Endeavour Drinks and ALH Group, in July 2019, with the restructure approved in December 2019
by shareholders.
The company also acquired
Shorty’s Liquor in January to sit under the Endeavour Drinks portfolio of brands, where the new business would be known as Endeavour Group. Its proposed leadership team was also announced
in January.
BEVERAGE PRODUCERS GIVE A HELPING HAND Beverage producers around the
world and around the country helped to meet
the high demand of hand sanitisers as a result of COVID-19,
stepping in to produce supplies for
those who need it most.
Companies included Carlton & United Breweries
(CUB), Diageo, Beenleigh Rum,
Fonterra, Spinifex Brewing and Limestone
Coast Brewing, Manly Spirits Co, Four Pillars and Bacardi.
Diageo’s Bundaberg Distilling Co produced 100,000 litres of ethanol for the Queensland Government to be forwarded to hand sanitiser manufacturers, while CUB teamed up with hygiene company Ecolab to manufacture
around 20,000
litres of hand
sanitiser for
frontline
healthcare
workers, and an additional 10,000 litres for CUB staff.
FOODMACH BUILDS MASK-MAKING MACHINES Australia’s only medical mask manufacturer, Med-Con,
had to step up production dramatically amid the COVID-19 crisis, and contracted Foodmach to assist in expanding manufacturing capacity.
Echuca-based packaging machinery manufacturer Foodmach was contracted to build machines to make surgical face masks for Med-Con. Pre-coronavirus times, the mask manufacturer’s plant in Lemnos, Victoria was making about two million masks per year – supplying about five per cent of the Australian market. But current pandemic-driven demand meant it needed to increase production to 50 million masks per year.
Med-Con usually fields a staff of 17, but the federal government recently confirmed deployment of about a dozen ADF personnel with engineering skills to help Med-Con ramp up production of personal protective equipment.
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ON THE COVER
IMCD
MAY / JUNE 2020
PACKAGING PROTECTING A STRATEGIC RANDOM THE LATEST IN
THE PLANET P10 HARVEST P16 PROCESSING TECH P22
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60 | Food&Drink business | November-December 2020
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