Page 66 - Food&Drink Nov-Dec 2020

YEAR IN REVIEW
FONTERRA TO ACQUIRE DAIRY COUNTRY, $19.2M Fonterra is set to acquire Dairy Country for $19.23 million. The company currently holds a
23 per cent market share in the Australian retail cheese category with brands such as Perfect Italiano, Mainland and Bega.
The acquisition from Retail Food Group, which is subject to regulatory approvals, will include the two Victorian packing and processing facilities, as well as related services, intellectual property and the trademark for the Dairy Country brand.
Fonterra
Australia
managing
director René
Dedoncker said it
had been looking
to bring more of its secondary cheese processing
in-house for some
time to gain
“greater end-to-
end control over a
range of different
cheese products
and further strengthen our integrated supply chain”.
PURE FOODS TAS BUYS DALY POTATO CO
Pure Foods Tasmania announced it was acquiring Daly Potato Company to help the company’s expansion into the ready meals market.
Daly Potato Company produces premium potato products sold through major supermarket chains. Sales have grown from $211,000 in 2017 to $2 million.
PFT will take on ~$300,000 debt, mainly relating to plant and equipment. Shares worth $1.4 million will be escrowed in three equal tranches and
$100,000 cash on settlement.
FREEDOM FOODS’ RECAPITALISATION PLAN Freedom Foods Group told the ASX it has secured ongoing support from its principle lenders and majority shareholder, Arrovest. This will ensure it has access to financial facilities as it undertakes a planned recapitalisation, it said.
The 11 September announcement said the company had agreed to a Standstill Deed with its two main lenders, HSBC and National Australia Bank (NAB), which is effective until 30 November. It is subject to FFG
meeting certain milestones relating to the progress of the recapitalisation plan.
A guarantee from an entity related to Arrovest means
HSBC and NAB will keep certain liquidity facilities available to the
group during the standstill period.
FORBIDDEN FOODS LISTS ON ASX, IPO RAISES $6M Plant-based food manufacturer Forbidden Foods launched on the ASX after an initial public offering (IPO) that raised $6 million from investors.
Forbidden Foods manufactures plant-based organic food, healthy snacks, baby food and industrial food service/food manufacturing markets. It started in 2010 and has three primary brands – Forbidden, Sensory Mill
and Funch.
The IPO was comprised exclusively of primary capital with the issue of 30 million shares at $0.20.
The IPO values the company at a market capitalisation of $15 million.
JBS TO CUT 600 JOBS AT DINMORE FACILITY
In September, JBS Australia announced around 600 full-time staff at its Dinmore beef processing plant, in Queensland, will no longer have work, as the company scaled back operations “for the foreseeable future”.
JBS cited a range of issues impacting livestock supply as well as market conditions amid the COVID-19 environment for the Dinmore scaled-back operation, which closed for a fortnight in late August.
“However, the difficult but necessary action we’ve taken allows us to preserve a further 1150 full time jobs during this challenging period, while protecting the long-term future of our Dinmore facility and our other Queensland beef processing operations,” JBS Australia CEO Brent Eastwood said in his statement.
grow its capabilities in aged care and health markets.
The Kuisine Company producers of prepared meals and finger foods with a range of clients including Aldi, health services, the NDIS, Meals on Wheels and other food service clients.
The acquisition includes Kuisine Co’s wholly owned brands – The Good Meal Co, The Gluten Free Meal Co, and Simply Special.
SPC CEO Robert Giles told F&DB the business was a good fit for SPC’s expansion plans and builds
“ Fonterra is looking to acquire Dairy Country for $19.23 million. It will allow the company to bring some cheese processing in-house.”
COSTA GROUP ACQUIRES MRO ASSETS FOR $4.5M Murray River Organics sold part of its Nangiloc property to a Costa Group subsidiary for $4.5 million. The 390 hectare site is part of MRO’s 3040 hectare property.
MRG managing director Valentina Tripp said the funds would be used to pay down debt and increase focus on growth of its branded portfolio.
Final settlement is subject to the registration of a subdivision plan which is expected to be completed by early 2021.
Costa will take over operations and management until the parcel is sold, with the property leased to Costa until the sale is finalised.
SPC BUYS KUISINE CO FOR HEALTHCARE MARKET Fruit and vegetable processor SPC took a majority stake in a frozen food manufacturer to
on its existing footprint in the health care space with its ProVital range. It also opens up new channels outside of retail for the business.”
FONTERRA SELLS CHINA FARMS FOR NZ$555M Fonterra CEO Miles Hurrell has said it is “time to pass the baton” of its China farms to local partners after “successfully developing productive model farms” in the country, selling the hubs for NZ$555 million.
China Youran Dairy Group subsidiary, Inner Mongolia Natural Dairy Co, will purchase Fonterra’s two farming-hubs in Ying and Yutian for NZ$513 million, while Fonterra has also agreed to sell its 85 per cent interest in its Hangu farm to Beijing Sanyuan Venture Capital Co for NZ$42 million. ✷
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